‘Watching global condition; calibrating policies accordingly’
New Delhi: Government and the Reserve Bank are closely monitoring global economic conditions as well as the movement of rupee value and accordingly calibrating policies regularly to support robust macroeconomic growth, Lok Sabha was informed today.
Replying questions on the rupee, Minister of State for Finance Jayant Sinha said the impact of exchange rate depreciation on different sectors of the Indian economy depends on a number of factors, like elasticity of exports and imports.
“The government and the RBI are closely monitoring the emerging external position including exchange rate of the rupee and on an-going basis calibrating policies or regulation to support robust macroeconomic outcome,” Sinha said in the written reply.
So far in 2015-16, exchange rate of the rupee has remained in the range of Rs 62.7-63.9 per US dollar.
The variation in the value of rupee in the recent months has been due to supply-demand imbalance in the foreign exchange market and the general appreciation of the American currency.
Sinha also said that to limit the import of gold and to bring the stocks in the mainstream economy, government has announced the monetisation of gold scheme in the Budget. The scheme will replace both the present Gold Deposit and Gold Metal Loan schemes.
In another reply, Sinha said India’s foreign exchange reserves were placed at USD 304.2 billion at end March 2014, USD 341.6 billion at end March 2015 and USD 353.5 billion at end of July 2015.