Top News
Falling rupee short-term trend, India in exceptional period of stability: Top official
By Manish Gupta and Vishav
New Delhi, Aug 29 (IANS) As the Indian rupee plunged to a fresh record low of 70.60 to a US dollar on Wednesday, a top government official said there is no need to be alarmed as despite the short-term volatility, the country is going through “an exceptional period of stability”.
The official said if one takes the long-term view, the rupee is not depreciating against most world currencies and that in fact it is a case of strengthening of dollar rather than weakening of rupee.
“I am not sure why everybody is concerned… For five years now, we have been stable pretty much against every currency. Even against the dollar, if you take a five-year view, we have only depreciated relatively little,” Principal Economic Adviser to Finance Ministry Sanjeev Sanyal told IANS in an interview.
“Against the pound, for example, we have appreciated in the last five years. We are broadly stable against Euro. The point I am making is we are not depreciating against most world currencies; what is happening is that the US dollar is strengthening,” he added.
Asked if the government is comfortable with the situation, he said: “It’s an evolving situation… There is no such thing as equilibrium in economics.”
Sanyal said had there been a domestic inflation problem, the depreciation of rupee would have complicated the situation. But, he said, India has inflation in control “which gives us some space to allow this process to happen”.
“As per the economic law of impossible trinity, once you have open capital accounts you can either control the monetary policy or the exchange rate,” he said, adding that since India has created an explicit monetary policy, the exchange rate has to be determined by the market.
“So, while you can slow (down) the adjustment using the foreign exchange reserves, in the medium term it will find its own level,” he added.
Sanyal insisted that the current depreciation of rupee would not have any bearing on the economy.
“We have signed up for this particular model. You have to get out of the idea that there is some sort of a value that we target; we are not doing that at all. The point is, it’s a matter of making adjustments according to the evolving situation.”
“There is no clear trend in our (rupee) depreciating, and in fact, if you take a longer time in history, this is the only time we have not been systematically declining against world currencies.
“So rather than bemoan the situation…this has been an exceptional period of stability. On a basket basis, we have appreciated…real effective exchange rate, we have appreciated,” Sanyal said.
The economist added the key was to maintain reasonable stability over longer periods of time and allow market adjustments where necessary in the medium term, and avoid short-term unnecessary volatility.
“And we have more than adequate foreign exchange reserves to manage any sudden sharp movement if there is a disruption in the world economy,” he said.
Sanyal said it is not in India’s interest for rupee to also strengthen along with the US dollar when other currencies, including Chinese Yuan, are also depreciating.
“What is the purpose of strengthening with the US dollar if all our trading partners and competitors are depreciating?” he asked.
(Manish Gupta and Vishav can be contacted at [email protected] and [email protected])
–IANS
mgu-vv/nir
Top News
Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
Foodman Vishal Singh Honored for Hunger Free World Mission in Bangkok
Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
Cheers and Cheers: Barzilla’s Joyful Ode to Inclusivity and Celebration
Casino Days Reveal Internal Data on Most Popular Smartphones
Meghalaya Reserves Legalized Gambling and Sports Betting for Tourists
IPL 20202 UPDATE: KXIP vs MI IPL Dream11 Team Prediction for Today Match, Update Point Table of all Team.
In a Live debate AAP leader Syed Asad Abbas hurls abuses to BJP spokesperson Nupur Sharma.
‘India’s Most Wanted’ trailer out Arjun Kapoor on hunt of Osama-Bin-Laden
Time to move on: Sonakshi on Shatrughan’s joining Congress
