Large -scale withdrawal in emerging economies
RBI (Reserve Bank of India) Governor Sanjay Malhotra said on Friday that the exchange rate policy has been the same for the last several years and the central bank has not targeted a “special level or band” for the rupee. The exchange rate of the rupee has come on a lifetime low of 87.59 against the US dollar. On Thursday, the rupee fell 16 paise to close at a record low of 87.59 per dollar. Announcing the results of the Monetary Policy Committee meeting, Malhotra said, “I would like to say here that the exchange rate policy of the Reserve Bank has been the same for the last several years. Our aim is to maintain a system and stability without compromising the efficiency of the market. ”
Rupee has fallen by 2 percent this year
Sanjay Malhotra said, “Our intervention in Forex Market is a focus on reducing excessive and serious instability rather than targeting a particular exchange rate level or band. The exchange rate of the Indian rupee is determined by the market elements. ”Let us tell you that the rupee has fallen by about 2 percent so far this year. Since the declaration of US presidential election results on November 6, 2024, the rupee has fallen by 3.2 percent against the dollar, while the dollar index has registered an increase of 2.4 percent during this period. Foreign exchange reserves have recorded a decline of US $ 45 billion in the last 3 months, one of the reasons for the RBI intervention in the foreign exchange market.
Large -scale withdrawal in emerging economies
As of November 8, 2024, India’s foreign exchange reserves were US $ 675.65 billion. By January 31 this year, India’s foreign exchange reserves increased to US $ 630.6 billion, which was 629.55 billion US dollars last week. This amount is sufficient for import of more than 10 months. The governor said that the US dollar has strengthened due to low expectations about the size and speed of interest rates in the US and increased the return on bonds. Emerging economies have withdrawn large -scale capital, causing a sharp decline in their currency and strict financial conditions.
Latest business news
