Free Falling Rupee Yet The Finance Minister Says No Need To Panic
On Wednesday, Union Finance Minister Arun Jaitley blamed “global factors” for plummeting rupee. As the rupee value hit a record low of 71.97 against the dollar on September 5, Jaitley tried to ease the country by saying that there was no need to panic, since the fall in the currency was driven by the external factors and the Reserve Bank of India (RBI) was doing everything necessary for currency management.
Finance minister while addressing the press said that, there were virtually no domestic reasons responsible for the weakening of the rupee. The press conference was held after the Union Cabinet meeting in Delhi.
“The reasons are global. We must bear in mind that in the last few months, the dollar has strengthened against almost every currency. And therefore, most global currencies have weakened vis-a-vis the dollar,” he said, as reported by The Hindu.
“No knee-jerk reactions please”
The fall and the fall of the rupee continued for the sixth consecutive session, and on Tuesday hit a fresh low of 71.75 before slipping further to 71.76 a dollar on Wednesday.
In fact, against the green currency, the Indian rupee has lost as much as 165 paise in just last six trading sessions, as reported by The Economic Times.
Mr Jaitley while asking people to not worry about the unabated rupee said that this fluctuation would eventually normalise and that the currency management was doing its best to better the present situation, “I don’t think there is any need for the world’s fastest-growing economy (India) to come out with panic and knee-jerk reactions,” he said.
He also pointed out that, in last four-five year, except Dollar, the Indian currency has strengthened or has remained constant against most other currencies.
He says if one has to compare most of the other currencies in the world, then in last few years rupee has better off.
He also cited an example of the Euro and Pound, which he said suffered a massive fall of 101.42 and 84.67 in 2013, but managed to pick up in five years.
On other issues
The union minister spoke about several other issues, Rafale deal, Pradhan Mantri Jan Dhan Yojana (PMJDY), Kerala floods were among them. While talking about the government has decided to make the scheme more attractive the government has decided to add more incentives to encourage people to open bank accounts.
Meanwhile, he also spoke about the Kerala flood relief, he said, the Rs 600 crore for the relief fund is sanctioned until now was only for interim relief purposes. He added saying that the centre is now moving towards a stage of rehabilitation for the state.