COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Hegde rejects demand for rupee devaluation

Hegde flays finance ministry, RBI for short-term vision on export credit rates

Commerce Minister Ramakrishna Hegde today rejected the industry's demand to adjust exchange rates stating, ''the adjustments should be left to market forces''.

Reacting to the demand of Sudhir Jalan, president of the Federation of Indian Chambers of Commerce and Industry, for devaluing rupee by seven to ten per cent to a realistic level, Hegde said, ''Who says the present rate is not realistic? For the last one year, the rupee had been quite stable. We are watching the situation and let us leave the adjustment to market forces.''

Hegde had yesterday, while announcing the Exim Policy, ruled out devaluation of the rupee.

Meanwhile, Jalan today said a realistic exchange rate policy is the need of the hour. ''We do not want the rupee to go on a tailspin... And so a slow realistic depreciation of the rupee should be allowed reflecting the current market situation and interest rates."

Once the exchange rates are brought to a realistic level, exports would become ''upwardly mobile'' and growth targets would be met, he added.

Business news