Industry Odisha Bureau, May 22: Amid the hullaballoo and deep concerns over Indian currency (Rupee) steadily falling low against the dollar following which the Reserve Bank of India (RBI) is reportedly on its all-out efforts to check and mend with requisite remedial measures, noted Professor of Economics and former NITI Aayog Vice-Chairman Dr Arvind Panagariya has reportedly urged not to panic and allow the depreciation instead of burning India’s forex (foreign exchange) reserves.
Defending his viewpoint reportedly through his series of posts on his official social media platform X on May 21, the noted economist has reportedly persuaded the RBI, “Don’t panic at Rs 100/$. 100 is just a number, like 99 and 101. RBI should allow depreciation instead of burning forex reserves to artificially support rupee defending a psychological barrier.”
Panagariya has also reportedly argued, “This is not 2013: Inflation was in the double digits in 2013. Thanks to your prudent monetary management, that is not the case now. Therefore, the economy is well-positioned to absorb some inflationary pressure that will accompany the depreciation.”
Caution the RBI’s against its reported move on “Dollar-denominated sovereign borrowing or high-interest foreign-currency deposits from Non-Resident Indians (NRIs) to shore up reserves,” the learned economist explained, “Such instruments are expensive and amount largely to a transfer of returns to wealthy NRIs because India pays substantially more on these liabilities than it earns on its foreign-exchange reserves.”
