New Delhi: Former Finance Minister P. Chidambaram has suggested that the central BJP government may seek advice from the former governor of the Reserve Bank of India, Raghuram Rajan, as the value of the Indian rupee continues to decline.
In this regard, he said on his Twitter page, “The value of the Indian rupee continues to fall. The central government is helpless in this matter. At this time, the central government should respect and take into account all the advice and experience available in the country. Prime Minister Modi C. Rangarajan, YV Reddy on this issue. , Rakesh Mohan, Raghuram Rajan and Montek Singh Ahluwalia and other experts should be consulted to decide the next course of action. The Prime Minister may take this consultation in the presence of the Finance Minister and the Reserve Bank Governor,” he said.
BJP condemns: BJP strongly condemned this. Amit Malviya, head of the BJP’s IT wing, said, “The five people nominated by P. Chidambaram are the ones who have weakened India in the past in 5 categories.”
Falling rupee value: The value of the rupee against the dollar has been continuously depreciating. The Indian rupee fell to Rs 83.12 against the dollar in early forex trading yesterday. This is an unprecedented decline. However, the rupee recovered to settle at Rs 82.71 at the close of trade.
The war between Russia and Ukraine started last February. The price of crude oil increased due to the war. As a result, international inflation intensified.
The US Federal Reserve started raising interest rates to control inflation. Following this, foreign investments started leaving the Indian stock market. Moreover, the widening gap between India’s exports and imports also led to a decline in foreign exchange reserves. As a result, the rupee began to depreciate against the dollar.
Economists have warned that if the current situation continues, the value of the rupee against the dollar will soon fall to Rs.84. In this situation, the former Finance Minister P. Chidambaram has suggested that the central BJP government may seek advice from the former governor of the Reserve Bank of India, Raghuram Rajan, as the value of the Indian rupee continues to decline.