The government through the finance minister told the house that recent measures taken by RBI include: Exemption of incremental Foreign Currency Non-Resident (Bank) and Non-Resident (External) rupee (NRE) deposits from the maintenance of CRR and SLR up to November 4, 2022, exemption of fresh FCNR(B) and NRE deposits from the extant regulation on interest rates to allow banks to provide higher interest rates till Octothan those offered to comparable domestic rupee term deposits with a view to attract foreign currency deposits, revision of regulatory regime relating to Foreign Portfolio Investment in debt flows to encourage foreign investment in Indian debt instruments and raising of External Commercial Borrowing limit (under automatic route) to $1.5 billion and the all-in-cost ceiling by 100 bps in select cases up to December 31, 2022.To avoid getting fleeced, the best way to convert INR to Euro is at ATMs or by using your debit card. Listing this measures initiated to soften the blow, She further said the RBI has raised interest rates in recent months that increase the attractiveness of holding Indian rupees for residents and non-residents. The RBI regularly monitors the foreign exchange market and intervenes in situations of excess volatility,” the minister stated.
The depreciation also impacts imports by making them more costly. “The depreciation of a currency is likely to enhance export competitiveness, which in turn impacts the economy positively. Replying to a question on how the Indian rupee stood equal to Bhutan’s currency on June 29-30, 2022, the minister said that the Bhutanese Ngultrum (BTN) has been pegged at par with the Indian rupee since its introduction in 1974 and moves in tandem with the Indian rupee.ĪLSO READ | Rupee falls to lifetime low of 79.58 against US dollarĬommenting on whether any review/study has been carried out by the government to assess the impact of this decline on the economy, people and various sectors of the country, the Union government's defence was that nominal exchange rate is only one of the factors that impact an economy. The finance minister, however, said that the decline of the Indian currency is not an isolated phenomenon and currencies such as the British pound, the Japanese yen and the Euro have weakened more than the Indian rupee against the US dollar and as a result, the Indian rupee has strengthened against these currencies in 2022.ġ0 days ago, a government source explained that the Dollar Index has gained 13% in 2022 against 6 major currencies - yen, pound, euro, Swiss franc, Canadian dollar and Swedish krona, while in contrast, the US currency has gained marginally less against the Indian rupee, which has transited from Rs 74.5 per dollar at the end of 2021 to Rs 79.74 at the end of June which is equivalent to close to 7% depreciation.
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