UNION Finance and Trade Minister Nirmala Sitharaman said on Saturday (local time) that the Indian rupee had fared much better than many other emerging market currencies in reference to the decline in the value of rupees against the USD as geopolitical tensions continued to rise.
Speaking at a press conference on her official visit to the United States, she explained that it was not the rupee that was weakening, but rather the USD that was strengthening.
Responding to ANI on the steps being taken to combat the decline, she said: “First of all I will look at it, not the Rupee decline and watch it as the USD continues to strengthen. So obviously all the other currencies are behaving against the strengthening of the USD It is a fact that the Indian Rupee has probably resisted the rise in USD rates, exchange rate in favor of the USD The Indian rupee has fared much better than many other emerging market currencies RBI’s efforts are more to see that there isn’t too much volatility, it’s not about intervening in the market to fix the value of the rupee. Containing volatility is the only exercise that RBI is involved in and I have said before that Rs will find its own level.”
#LOOK | United States: Finance Minister Nirmala Sitharam responds to ANI’s question on the decline in the value of the Indian rupee against the dollar as geopolitical tensions continue to rise, on measures taken to combat the fall pic.twitter.com/cOF33lSbAT
— ANI (@ANI)
October 16, 2022
Talking about inflation, she said: “The fundamentals of the macroeconomy are good and foreign exchange reserves are good. We are in a comfortable situation and that is why I keep repeating that inflation is also at a level manageable. We are making efforts to bring it further down.”
She also highlighted the growing trade deficit in all areas. She said: “The trade deficit is growing and growing across the board. But we are watching if there is a disproportionate increase against any particular country.”
Speaking of cryptocurrency, she highlighted the technology-driven regulatory framework for G20 members.
“We want to bring cryptocurrency issues to the G20 table so that members can discuss and come up with a framework or SOP so that globally countries can have a regulatory framework focused on technology,” said FM Nirmala Sitharaman.
She also expressed concern about the global fallout from their political and economic decisions, she said: “I said that at the meetings and there were several others, by the way all from the countries of the South”.
She also raised the issue of the energy crisis amid the Russian-Ukrainian war and said that many countries have had to revert to coal for power generation because gas is not affordable or not available. .
“The western world has seen countries switch to coal, Austria has already said the same. In the UK, one of the oldest legacy thermal units is back. It’s not just India , many countries have had to revert to coal for power generation because gas is not affordable or not available,” said FM Sitharaman.
Speaking about India’s G20 Presidency, she highlighted the increased use of digital applications by the country and said it will be showcased to member countries.
“Many members suggested that during the G20 we should show what we have done in our digital achievements, such as how Aadhar or other digital applications have spread in the country,” she said. .
Even when meeting with World Bank President, David Malpass himself said that India should show how common people have accepted the deepening of digital applications in India.
Sitharaman further stated that Malpass would be happy to work with India to take him to other parts of the world.
She met today with World Bank President David Malpass in Washington. The two leaders discussed a variety of issues including India’s #G20 Presidency, improving MDBs’ capital adequacy framework, addressing debt vulnerabilities and strengthening WBG engagement with the India through Knowledge Exchange and MIGA.
“Finance Minister Smt. @nsitharaman thanked Mr. @DavidMalpassWBG for a productive Development Committee meeting and his support to India over the past two years, especially in increasing the single borrower limit,” said tweeted the Ministry of Finance.
The Minister of Finance mentioned that the World Bank has been a valued partner of the G20 since its inception and India looks forward to concluding the collaboration with the World Bank during the upcoming G20 Presidency.
Meanwhile, impressed with the rapid and deep penetration of the Indian government’s financial inclusion and digitalization initiatives among the poor, Malpass assured Sitharaman to introduce him to other FMs as a way for governments to help their poor to take the plunge in these difficult times.
FM Sitharaman also mentioned that during its presidency, India would like the G20 to explore the possibility for MDBs to enhance climate finance through resource mobilization and intermediation.
She also met Mohamed Al Hussaini, Minister of State for Financial Affairs of the United Arab Emirates, on the sidelines of the 2022 annual meetings of the IMF and the World Bank.
The two leaders exchanged views on India’s upcoming G20 Presidency, UAE’s CoP28 Presidency, climate finance and other areas of common interest.