The Finance Minister, who is on an official visit to the United States, was asked during a meeting about the weakening of the rupee against the dollar. She was asked: “Earlier this week, the Indian rupee traded slightly weaker as geopolitical tensions continued to mount. What is your assessment of the challenges the rupee could face in the coming days and what measures are being taken to tackle the slide? ”
Nirmala Sitharaman‘s comment
In his response, Sitharaman said, “First of all, I would see it as not a falling rupee and see it as a strong dollar, a strong dollar constantly. So it is clear that all other currencies are performing against the stronger dollar. And I’m not talking technical but the fact that the Indian rupee probably has withstood this dollar appreciation, the exchange rate favoring a stronger dollar is there and I think the Indian rupee India has performed much better than many other emerging market currencies.
“But I think the efforts are due to RBI more towards maintaining a certain number, say, towards seeing that there isn’t too much volatility. It is not about intervening in the market to fix the value of the rupee. So, curbing volatility is the only exercise the RBI is involved in. And, I’ve said this before, the rupee will find its own price,” said the Finance Minister.
Parliament criticizes Sitharaman
Parliamentary leaders were upset and criticized Sitharaman’s remarks.
Leaders of the National Assembly Rahul Gandhiwho are marching as part of Bharat Jodo Yatrasaid, “India ranks 107th out of 121 countries in terms of hunger and malnutrition! Now the prime minister and his ministers will say, ‘Famine is not increasing in India, but people are not feeling hungry in other countries’. How long will RSS-BJP work to weaken India by misleading the public from reality? ”
और 121 देशों में 107 वें स्थान पर! , ‘भारत … https://t.co/bCXZU62zEf
– Rahul Gandhi (@RahulGandhi) 1665910830000
In a detailed reply, the speaker of Parliament Gourav Vallabh seeks to undermine the finance minister’s view of the rupee against the dollar.
In a Hindi video post on Twitter, Vallabh said, “When Modi took over as Prime Minister, one dollar was equivalent to Rs 58.43, today Rs 82.32. This means that against the dollar, the rupee has depreciated by 41% over the past eight years. But you are saying that the rupee is not falling, the dollar is rising.”
He said, “Sometimes you say you can’t do anything with onion sprouts because you don’t eat onions. Your misguided policies have turned our country’s demographic dividend into a demographic disaster. I would like to ask you if job openings have increased by 41% in the last eight years? Will people’s income increase by 41%? But the dollar is available for 41% more than the rupee. ”
Vallabh said that when the rupee depreciates, the price of crude oil will rise.
“Then you would say what you can do, this is dynamic price and it went up in the international market. We raise prices because we import 85% of gasoline and diesel. We import half of the country’s demand for LPG. We import 60-65% of electronic equipment components. ”
Therefore, as a result of the Modi government’s reduction in prices, petrol, diesel, gas, LPG, mobile phones, TVs, refrigerators, computers and other electronic devices will become more expensive, he said.
“Besides these, the spending of the middle-income group when sending their children to higher education abroad will increase. How long will we tolerate your frivolous and flawed policies? ‘ he said at last.
माननीय @nsitharaman जी, आपकी अयोग्यता, अक्षमता : “नाच … https://t.co/mYZTOBG5SY
– Professor Gourav Vallabh (@GouravVallabh) 166591507500
Another party spokesman scrutinized Sitharaman closely and commented: “She (Sitharaman) even defeated ‘the whole of political science’. The rupee is not weak, the dollar is strengthening! ”
BJP opposes Congress
The BJP accused Congress of distorting Sitharaman’s remarks and quoting them out of context. It turns out that the finance minister has made it clear that the rupee has performed much better than many other emerging market currencies.
Co-curator of BJP leadership in West Bengal, Amit Malviya said: “People who cannot do basic math are commenting on the rupee dollar, which is too complicated for their small brains and trying to love reading FM’s statement out of context. “The Indian rupee has performed much better than many other emerging market currencies,” she said plainly.
People who can’t do basic math are commenting on rupee dollars, too complicated for their tiny brains and… https://t.co/SQCrb7SDaR
– Amit Malviya (@amitmalviya) 1665909565000
Malviya added: “The ‘weakness of the Rupee’ was witnessed in 2009-14, during the ineffectual rule of Parliament, which resulted in poor macro indicators, making India a a fragile economy. GDP growth is weak, capital inflows are weak, inflation is high in the double digits, deficits are high, exports are slowing, and reforms have stalled.”