Rupee has not depreciated to a worrying level, says Rajan


Team Udayavani, Aug 25, 2018, 11:37 AM IST

New Delhi: Former RBI Governor Raghuram Rajan has said that the rupee has not depreciated to ‘too worrying levels’, though the government needs to take care of the widening current account deficit (CAD).

The rupee on August 16 had slumped to a life-time low of 70.32 on strong demand for the US dollar.

The rupee staged a good recovery to end higher by 20 paise at 69.91, on Friday, against the US currency on bouts of dollar selling by exporters and corporates.

“Well just to be fair, the Indian authorities have brought down the fiscal deficit. What has expanded is the current account deficit. A lot of it driven by higher oil prices,” he said.

“The rupee has not depreciated to too worrying levels, its sort dollar strength around the world,” Rajan told a TV channel.

Rajan, who was RBI governor for three years till September 2016, said further that this is a time where countries should be focusing on getting the macro stability in order.

“Going into election year, countries like India and Brazil should try their level best to look as good as possible,” he said.

On the controversy over back series GDP data which showed that the growth was better during UPA regime, Rajan said: “What we have to do right now is to look forward…its growing at about 7.5 per cent.” 

India, he added, has to make sure that CAD does not grow out and fiscal stability is maintained.

Replying to a query on rising bad loans, Rajan said there is a need to improve governance in the banks.

“My sense is that whichever new administration comes this will be task number one for them,” Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth School of Business said.

India’s trade deficit soared to a near five-year high of USD 18 billion in July, raising concerns on the current account front.

Recently, a top finance ministry official said that the government will meet the fiscal deficit target for the current fiscal but is also expecting some slippage in the CAD on higher crude oil prices.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Actress Kasthuri released from jail, says ‘I thank those who made me raging storm’

Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial

100 engineering colleges in Karnataka to be ‘adopted’ by corporates by next year: IT Minister Kharge

Siddaramaiah defends BPL ration card cancellation, says only ineligible beneficiaries affected

China announces new policy measures to protect its exports from Trump’s new tariff threat

Renovated Medical Oncology OPD and Chemotherapy Day Care Centre inaugurated at Kasturba Hospital, Manipal

Karnataka Health Minister justifies revision of user fees in state-run hospitals

Related Articles More

Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial

Gautam Adani charged in US with USD 250 mn bribery, fraud

India’s GDP growth likely to slip at 6.5 pc, maintains 7 pc estimate for FY25: Icra

RBI cautions public about ‘deepfake’ video of governor being circulated on social media

We disagree with decision, plan to appeal: Meta on CCI imposing Rs 213-cr penalty

MUST WATCH

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation

Geethotsava

Naxal Operation


Latest Additions

PM Modi leaves for home after concluding three-nation visit

Siddaramaiah says confident of winning all three bypolls in Karnataka

Hop on! IT Minister Priyank Kharge checks out Uber Shuttle at Bengaluru Tech Summit

Actress Kasthuri released from jail, says ‘I thank those who made me raging storm’

Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.