Wages and costs will go up, export competitiveness will be damaged and savings in banks will be pulled out and put into gold - that age old repository of value - which actually means capital flight from India since 86 per cent of gold demand is met from abroad for which foreign exchange has to be paid.
Over the next two or three years we aim at taking measures to consolidate TARGET2 and TARGET2-Securities (T2S ), in particular by delivering a centralised liquidity management function; developing a single collateral management system that will be capable of managing the assets used as collateral in Eurosystem credit operations for all euro area countries.