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As rupee approaches 70, Assocham urges RBI, FinMin to ensure stability

This comes after the Indian Rupee plunged to an all-time low of Rs 68.89 per US dollar earlier this week

ANI  |  New Delhi 

rupee & dollar

The (RBI) and the Ministry should work in to ensure that the Rupee does not face any more significant fall from the current levels, the Assocham said.

This comes after the plunged to an all-time low of Rs.68.89 per US dollar earlier this week, owing to an increase in the international and trade war concern between the and

As per the industry body, further depreciation of the Rupee could cause 'imported inflation', resulting from currency depreciation and rising

"We are sure, the and the Ministry, helped by robust foreign exchange reserves would step in at each volatility point to safeguard the macro-economic stability," the said.

While the has been rightly leaving the foreign exchange rates to the market, it must step in at unusual times of uncertainty and volatility, caused by a combination of geo-political factors such as less than adequate raise in crude production by the OPEC member countries and an overall pressure on the Emerging Markets in the financial markets, it added.

The opined that the should also step in to ensure that the exporters are facilitated to the maximum to push exports and the inward remittances as the import demand for dollar rises up. The non-essential imports can be curtailed and the trade deficit should be kept in check and not be allowed to balloon, it added.

The chamber also urged the to engage more with the Non-Resident Indians while the in consultation with the commercial banks should devise more of the schemes for the NRIs for inward remittances.

"All channels of remittances should be explored and used to the maximum so that the foreign exchange kitty remains stable."

To give a comfort level to the Foreign Portfolio Investors, the suggested that the (SEBI), RBI and the Ministry should further simplify the rules for investing in the secondary debt and equity markets.

"A combined approach from all fronts is needed to remain on top of the unfolding situation. Macroeconomic indicators should not be allowed to slip away. We have been used a good set of macro numbers and the same must be maintained," it said.

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First Published: Sun, July 01 2018. 09:44 IST
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