FM Sitharaman asserted that there is no fall in the Indian rupee


New Delhi: Amid concerns about devaluation, Rs Rs Against the US dollar, Finance Minister Nirmala Sitharaman Tuesday emphasized that there was no collapse of the unit and that it was indeed finding its natural course. Sitharaman informed the Rajya Sabha that the RBI constantly monitors the local currency and intervenes only if there is volatility.
“The RBI’s intervention in determining the value of the Indian rupee is not so much as it is free to find its own way,” the minister said in the Rajya Sabha during question period.
In reply to supplementary questions, she said that the interventions from the RBI are more to curb the volatility that is happening between the Indian rupee and the US dollar and so on.
“Even the interventions by the RBI are not so much to determine the value of the Indian rupee – increase or decrease. It is not for that. It is more to avoid volatility and allow it to find its way.
“India, like many other countries, is not pegging its currency externally. So the way and what we want to strengthen… the RBI and the ministry are quite engaged in that,” she said as members expressed concern over this. . Depreciation of Indian currency.
On suggestions that non-resident Indians should be allowed to make remittances in foreign currency, she said she had no assurance that the finance ministry would give but could only suggest to the RBI.
Seetharam said the rupee has seen more volatility against the US dollar but has outperformed its peers. “We have weathered the impact of US Fed decisions better than any other peer currency,” she told the House.
In fact, if you compare the Indian rupee against other currencies, it is appreciating in value, she urged members to understand the context and talk about the Indian rupee.
“I want to assure the member that there is no collapse of the Indian rupee,” she asserted.
On the decline in reserves, she said, “We are still in the range of ($) 500 (billion).
As of July 22, it was $571.56 billion in reserves, she said, adding that it was not a small amount and India was still comfortably positioned. “Therefore, I want the House to consider the performance of the Indian rupee against others, be it the UK pound and so on and refer to the performance of the Indian rupee against the US, especially due to the actions taken by the US Fed,” she said in the Rajya Sabha.
“There is no collapse. It is actually finding its natural course. The RBI is constantly monitoring it and intervenes only if there is volatility. RBI’s intervention to fix the value of the Indian rupee is not so much as it is free to find its own. . course,” Sitharaman said.
Earlier, TMC member Luizinho Falero claimed that the rupee has depreciated 28-fold by 34 percent in the last six months and foreign reserves have dwindled to $572 billion by mid-July.
Recalling the remarks of Narendra Modi when he was the Chief Minister of Gujarat, Pramod Tiwari of Congress asked when the value of rupee will increase?
The Finance Minister replied that when the then Chief Minister of Gujarat and now the Prime Minister commented on the Indian currency, the economy was in serious shape on all other parameters.
“The reason for his comments at that time was that India had double-digit inflation for 22 consecutive months. India had become a fragile economy. Today there is recovery from the epidemic, the second wave, the Ukraine war. India’s currency is still strong. Keep in mind,” she said.
Earlier, Minister of State for Finance Pankaj Chaudhary had said that the government was making efforts on the depreciating value of the Indian rupee.
During the UPA from 2004-2014, he said the rupee depreciated by 10-12 per cent in a year, while the decline in the rupee during the last eight years from 2014 to the NDA government was much less. He said that the value of the US dollar has increased by 4.54 percent.

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