Look at the depreciation of the rupee without emotions; currency has behaved in an orderly fashion since the Russian war: Das
RBI Governor Shaktikanta Das on Wednesday called on everyone to watch the currency depreciation without emotions, saying the rupiah has behaved in an orderly fashion since the current geopolitical crisis.
In remarks that came amid a heated debate over the constant depreciation of the rupee which leads to imported inflation, Das said the rupee had depreciated less against other major currencies and had in fact appreciated against other currencies beyond the US dollar.
”Discussions of the one-way descent and defense of the RBI dominate the narrative in the public space. It is therefore important to approach the issue without emotions and with nothing but facts,” Das said at the annual FIBAC bankers’ conference here.
“The Rupee has seen a very orderly move since the onset of the current geopolitical crisis. We must face the global hurricane with confidence, endurance and the courage of our belief that we will overcome this turmoil,” he added.
On a fiscal year basis, almost all major currencies – with the exception of a few such as the Swiss franc, Singapore dollar, Russian ruble and Indonesian rupiah – depreciated against the US dollar by more than the rupee, he said.
The rupee appreciated against all other major currencies except of course the US dollar and a few other currencies, he added.
The rupee appreciated 12.4% against the Japanese yen, 5.9% against the Chinese yuan, 4.6% against the British pound and 2.5% against the euros, he said.
“The story of post-war currency movements in Ukraine is more about India’s resilience and stability in the face of the relentless strengthening of the US dollar rather than a story of weakness,” Das said.
He said the rupiah’s share in world trade is linked to overall economic growth and especially exports.
An assessment of India’s innate strengths can be gauged from a comparison of the state of the economy today after three years of multiple shocks, with the situation during the tantrum in 2013, when the India has been listed as one of the “five fragile countries”, he said. .
The governor said the current period of tight liquidity is likely to be transitory as outflows from foreign exchange demand will slow after the festival season, government spending will increase after the monsoons, and the pace of foreign exchange outflows will moderate.
“The Reserve Bank remains nimble and vigilant, continuously monitoring the liquidity situation and stands ready to undertake liquidity operations on either side so that overall liquidity remains sufficient to meet the needs of the productive sectors of the economy. “, did he declare.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)