Re: Is there no one in charge of the Rupee?
- From: karmayog.orgShirish Mehta <jasclean@...> wrote:Dear Vinay,1. Well thought and written !
2. A very pertinent point to ponder on as, at such Rupee depreciating times as at present, one wonders who is in control . The Finance Ministry, the PMO as well as the RBI keep passing the buck. Alternately, it's the external scenario which suits everyone.3. I was always under the impression that the Finance ministry must be having a think tank whose prime task would be to suggest an optimised rate of the Rupee and also initiate actions in concert with RBI, overtly or covertly. Also, Subbarao can't get away by saying that he will leave the rate to market forces or that it is out of RBI's purview. The key issue is how to encourage Exports and have long term policies of minimal Oil and Armaments Imports. CAD cannot be simply cut by having short term capital flows. The detrimental effects of high CAD are well documented and known. I think all these wise men are aware of what to do..........it is more a question of will than way.Shirish