NEW DELHI: The rupee is going global! This is not to deny that the rupee has been convertible on the current account since 1994. But calibrated steps by the Reserve Bank and the government over so many years is leading inevitably to the rupee going fully convertible, says Anil Padmanabhan, editor of the popular Capital Calculus on substack.
Answering questions on The Gist, he pointed to the recent Reserve Bank decision allowing importers and exporters to pay in rupees. It has been attributed as a move to get around US sanctions on Russia, but there is a larger point to be made. The Indian economy rests on strong foundations despite the pandemic, growth and demand are picking up, and forex reserves at over $580 billion are very healthy.
Tune in for more, also the reasons for the fall in the value of the rupee and its implications.