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

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

After Yogi’s ‘batenge, katenge’ slogan, PM pitches for unity with ‘Ek hai, toh safe hai’ message

“Coming soon.. 2025”: KL Rahul and Athiya Shetty announce first pregnancy

Mangaluru: Unauthorized bus stops at signals fuel traffic woes and safety concerns

SC notice to Karnataka, DK Shivakumar on CBI plea against withdrawal of consent by state govt

Will remain active in politics till my last breath: JD(S) patriarch & ex-PM Deve Gowda

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Related Articles More

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Sensex, Nifty fall for 2nd day on FII selling; RIL, ICICI Bank major drag

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

Use Carnatic music to promote Kannada language: Nirmala Sitharaman

Udupi: Car collides with bike; Rider injured

UP women’s body proposes men shouldn’t tailor women’s clothes or cut their hair

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Thanks for visiting Udayavani

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