Amid concerns over the decline in the value of the rupee against the US dollar, Finance Minister Nirmala Sitharaman on Tuesday emphasised that there was no collapse of the unit and it was actually finding its natural course, as reported by PTI. Sitharaman informed the Rajya Sabha that the Reserve Bank of India (RBI) was continuously monitoring the local currency and intervening only if there was volatility.
”The RBI interventions are not so much to fix the value of the Indian Rupee because it is free to find its own course,” Sitharaman told the Rajya Sabha during Question Hour. Sitharaman further said that the RBI’s interventions were more for containing volatility that was happening between the Indian rupee and the US dollar and so on.
”Even the interventions being made by RBI are not so much to determine the value – increase or decrease, of the Indian rupee. It is not for that. It is more to avoid the volatility and allow it to find its course,” the finance minister said.
Sitharaman, while addressing the concerns over the decline in the value of the Indian currency added, ”India, like many other countries, is not pitching its currency at a level extraneously. So the ways and which we want to strengthen… the RBI and the Ministry are fairly engaged in it”
The finance minister also said that the Indian rupee had performed better than its peers. ”We have withstood the impact of the US Fed’s decisions much better than any other peer currency,” she told the house.
Actually, if you compare the Indian rupee versus other currencies, it is appreciating in its value, she said, urging the members to understand the context and speak about the Indian rupee.
Earlier, TMC member Luizinho Faleiro had claimed that in the last six months, the rupee had depreciated 28 times by 34 per cent and foreign reserves declined to USD 572 billion by mid-July.