Monday, December 4, 2023

FM Sitharaman: Indian Rupee has performed much better

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As geopolitical tensions continue to rise, Indian Finance Minister Nirmala Sitharaman remarked that the Indian Rupee has fared better than many other developing market currencies.

She highlighted that the USD was gaining rather than the Rs decreasing during a press conference on her official visit to the US. In response to a question from ANI about the steps being done to stop the decline, she stated, “First of all, I will look at it as USD strengthening continuously rather than the Indian Rupee dropping.

Therefore, it follows that all other currencies are performing against the USD’s strength. It is a truth that the Indian Rupee has likely remained stable as USD exchange rates have increased in favour of the USD. When compared to other developing market currencies, the Indian rupee has done substantially better.

She also remarked on the general increase in the trade imbalance. She stated: “The trade imbalance is rising and rising uniformly. However, we are keeping an eye out for any excessive increases against any particular nation.”

She emphasised the technologically driven regulatory framework for G20 nations while discussing cryptocurrencies.

“We want to put cryptocurrency-related issues on the G20 agenda so that members can talk about them and come up with a framework or SOP so that nations around the world may have a technologically driven regulatory framework,” said FM Nirmala Sitharaman.

“I did express this inside the meetings and there were several others, interestingly all from South nations,” she said, “about the worldwide overflow of their political and economic policies.”

She also brought up the energy situation that has resulted from the Russia-Ukraine conflict, noting that many nations have been forced to return to coal as a source of energy since gas is either too expensive or unavailable.

“Countries in the west have begun switching to coal; Austria has already stated as much. One of the first legacy thermal units is back in use in the UK.

It’s not only India; many nations have been forced to switch back to coal in order to produce electricity since gas is either too expensive or unavailable “FM Sitharaman added.

She emphasised the rising usage of digital applications in India during its G20 Presidency and promised that member nations will see this.

“Many members have suggested that during the G20 we highlight our digital accomplishments, such as how Aadhar or other digital apps have taken off in the nation, she added.

President David Malpass of the World Bank remarked during her discussion with him that India should serve as an example of how the general populace has welcomed the expansion of digital applications in India.

Malpass said he would be pleased to collaborate with India to bring it to other areas of the world, which was further confirmed by Sitharaman.

Today in Washington, she met World Bank President David Malpass. The two leaders talked on a range of topics, including upgrading the capital adequacy framework for MDBs, tackling debt risks, and increasing WBG’s engagement with India through Knowledge Exchange and MIGA. India is now serving as the #G20 Presidency.

According to a tweet from the Ministry of Finance, “Finance Minister Smt. Nirmala Sitharaman commended Mr. David Malpass for a fruitful Development Committee meeting and assistance to India over the previous two years, notably in extending the Single Borrower Limit.”

The Finance Minister stated that India looks forward to concluding cooperation with the World Bank during the future G20Presidency and that the World Bank has been a significant partner of the G20 since its establishment.

In the meantime, Malpass assured Sitharaman that he would make abreast of the Government of India’s financial inclusion and digitalization initiatives to other FMs as a way for governments to help their poor leapfrog in these difficult times. Malpass was impressed by the quick and deep penetration of these initiatives among the poor.

FM Sitharaman also stated that India would like the G20 to look at the possibility of MDBs enhancing climate funding through resource leveraging and intermediation during its G20 Presidency.

On the fringes of the IMF-WB Annual Meetings 2022, she also met Mohamed Al Hussaini, the UAE’s Minister of State for Financial Affairs.

The two leaders discussed topics of mutual interest, including the next G20 India Presidency, the UAE’s CoP28 Chair, climate financing, and other topics.

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