NEW DELHI: Finance Minister Nirmala Sitharaman has said that the Indian Rupee has performed much better than many other emerging market currencies. Her stance comes as the rupee fell to an all-time low of 82.68 against the US dollar during early trade this week.
The Finance Minister, while answering a query on how the value of the Rupee keeps dropping against the US dollar, said the USD was strengthening rather than the rupee weakening.
“First of all, I will look at it, not the Rupee sliding and look at it as the USD strengthening incessantly. So, obviously, all other currencies are performing against the strengthening of the USD. It is a matter of fact that Indian Rupee has probably stood this USD rates going up, exchange rate in favour of the USD,” she told ANI.
On handling this, the Finance Minister, who is on a visit to the US, said the efforts of the Reserve Bank of India (RBI) are more towards seeing that there is not too much volatility. “The efforts of RBI are more towards seeing that there is not too much volatility, it is not to intervene in the market to fix the value of the Rupee. Containing the volatility is the only exercise RBI is involved in and I have said this before that Rupee will find its own level,” she added.
Reiterating that inflation in the country is manageable, the Finance Minister said the country was “in a comfortable situation” and efforts are on to bring it further down.
According to Sitharaman, the trade deficit was growing across the board. “But we’re keeping a watch if there is any disproportionate increase against any one country,” she said.
On India’s G-20 presidency, Sitharaman said the country’s increased use of digital applications will be showcased to member countries. “There are suggestions by many members that India should showcase how common people have accepted the deepening of digital applications in India,” the minister said.
She also added that India would want to bring the matter of cryptocurrency to the table of G20 so that members can discuss it and arrive at a framework or SOP so that countries across the globe can have a technologically-driven regulatory framework.
The Finance Minister also met World Bank President David Malpass in Washington on Saturday.