Now Reading: Goyal Says Government Does Not Interfere in Exchange Rates
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Goyal Says Government Does Not Interfere in Exchange Rates
Commerce and Industry Minister Piyush Goyal said exchange rates are determined by market forces and global factors, not government intervention. He said the government would focus on promoting exports, reducing import dependence…
The Story in Brief
Commerce and Industry Minister Piyush Goyal said exchange rates are determined by market forces and global factors, not government intervention. He said the government would focus on promoting exports, reducing import dependence and attracting investment. Goyal also cited free trade agreements, import substitution and easier business rules as support for industrialisation.
The Hindu BusinessLine, citing three traders, reported that the Reserve Bank of India likely intervened in the foreign exchange market to support the rupee. The currency traded near Rs 95.40 per dollar and stayed within a narrow Rs 95.17 to Rs 95.4450 range during the week. The reports present different views on the role of official intervention.
The Indian Opinion
The easy story that the government either controls the rupee completely or does nothing is too simplistic. Goyal’s market-based explanation and traders’ account of RBI action can both describe different parts of the system, since intervention need not mean fixing a rate. The useful test is the RBI’s disclosed foreign exchange data and whether the rupee holds beyond the Rs 95 level without repeated official support.
Sources (2): millenniumpost.in, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
