Finance Minister Nirmala Sitharaman: Re Less Volatile Than Other Currencies: Fm | Mumbai News

Mumbai: Finance minister Nirmala Sitharaman said that the rupee has exhibited greater stability compared to its counterparts even as yields in govt securities market have stabilised, thanks to RBI’s measures building investor confidence.The finance minister was speaking at a function to commemorate RBI’s 90th anniversary. “In the past few years, India’s capacity to manage and take care of external imbalances and uncertainties has significantly improved purely because of the professional management of RBI,” she said.The finance minister’s statement comes at a time when govt and the central bank are working on internationalisation of the rupee. Sitharaman said that RBI stands tall among its peers on several counts. “When Covid hit, RBI adopted and deployed a conventional and unconventional range of instruments to provide liquidity and to promote growth and ensure financial stability.”Sitharaman cited the moratorium on loan repayments and the infusion of liquidity. “RBI was among the earliest to recognise the non-transient nature of inflation and front-load interest rate hikes,” she said, adding that forex management is also an area where RBI has done exemplary work by building up reserves.She emphasised the global recognition of RBI’s contributions by citing the acknowledgement from the Bank of International Settlements. This recognition specifically commended RBI’s role in anchoring inflation expectations through its effective communication policies.

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