OUR ₹. Over the last few weeks, numerous restrictions have been placed all with the aim of helping the rupee. Unfortunately, it has been a fruitless exercise. The rupee remains near its all time lows. Most of the restrictions placed are seen as signs of desperation, and so sentiment around the currency has worsened further. The main problem with the current approach is that it is entirely focused on stopping the rupee from depreciating. Rupee depreciation is a symptom of a widening current account deficit, falling GDP growth, and excessive corruption. If we are only focused on treating the symptom without treating the underlying cause, the problem will not go away. Instead, we need to focus our efforts on the three underlying causes. We need to boost growth, reduce our current account deficit, and get tough on corruption. Short-term fixes, such as the restrictions recently announced do not address these causes. These underlying causes are long-term issues, and they require long-term solutions.
Posted on: Sun, 18 Aug 2013 08:53:14 +0000
Recently Viewed Topics
© 2015