Rupee holding up ‘relatively well’ compared to advanced economies: Shaktikanta Das
The Hindu
‘Imported inflation is a challenge,’ says the RBI Chief
Reserve Bank Governor Shaktikanta Das on Friday, July 22,2022, said the rupee is holding up relatively well when compared to the currencies of emerging market peers and advanced economies.
Days after the domestic currency breached the 80-level against the dollar, Das said Reserve Bank of India (RBI) has zero tolerance for volatile and bumpy movement in the rupee and added that the central bank actions have helped in smoother movement.
He said RBI has been supplying US dollars to the market to ensure adequate supply of liquidity and also clarified that the central bank does not target a particular level for the currency.
Further, Mr. Das said there was no need to be alarmed by unhedged exposures on foreign borrowings. Bulk of such exposures are by state-owned companies and the government can pitch-in with help if need be, he added.
According to him, the inflation targeting framework has worked well since adopting it in 2016 and stressed that the same should continue in the interest of the economy and the financial sector.
"We should not shift the goal posts to suit the immediate requirements," Mr. Das said.
Speaking at an event organised by Bank of Baroda, he also said that imported inflation is a challenge because India is a key importer of commodities.
Around 440 MBBS graduates of 2021 are not required to undergo one year of compulsory rural service as per the bond signed by them while joining the medical course through government-quota seats in 2015 as the High Court of Karnataka has said the law, enacted in 2012 for mandatory rural service, remained unenforced for 10 years as it was published in the official gazette only in July 2022.