Rupee @91: Sanyal said – nothing to fear, gave example of China-Japan
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Prime Minister’s Economic Advisory Council member Sanjeev Sanyal said on Thursday that he is not worried about the huge fall in the rupee against the dollar.
Sanyal said, when Japan’s economy was growing very rapidly, its exchange rate was kept very weak.New Delhi. Prime Minister’s Economic Advisory Council member Sanjeev Sanyal said on Thursday that he is not worried about the huge fall in the rupee against the dollar and it should not be linked to economic problems. He said that countries which are growing rapidly often see weakness in the exchange rate, and this has happened with Japan and China in the past as well.
Sanyal said in a program that since the 1990s, the rupee has been allowed to move largely according to the market. However, the Reserve Bank of India uses its foreign exchange reserves when there are high fluctuations in the rupee. He said, I am not at all worried about the money. It is not right to link the current weakness of the rupee with any economic concern. History shows that rapidly growing economies often go through periods of exchange rate weakness.
The currencies of China and Japan have also remained weak
Sanyal said, when Japan’s economy was growing very rapidly, its exchange rate was kept very weak. The same thing was seen in China in the 1990s and 2000s. The rupee crossed the level of Rs 91 per dollar for the first time on Tuesday and reached its lowest level. On this, Sanyal said, weakening of rupee is not a negative sign in itself, unless it increases domestic inflation. This is not happening right now. According to data, the rupee has weakened by 5.7 percent against the dollar since the US increased tariffs on April 2 this year, which is the worst performance among the world’s major economies. However, the rupee has also strengthened intermittently on expectations of a US-India trade agreement.
National interest is paramount in trade deal
On India-US trade talks, Sanyal said that India is rapidly taking forward trade talks with the EU and the US, but national interest will remain uppermost in this. He said, in some cases some compromises will have to be made, but we will ensure that the decisions are in the interest of the country. He also said that India has not escalated any issue in America’s case. We have taken precautions, but have not bowed down. Sanyal said that China and India are the only two countries that have not really succumbed to American pressure.
