The recent steep fall of the rupee against the dollar (“The rupee under pressure,” editorial, Sept.27), even threatening to breach the psychological mark of Rs.50 after retaining its stability for long, only reminded me of the dealer-miracles performed by our regulators in the RBI and the Ministry of Finance during the Asian currency crisis in 1997 to keep the rupee stable when almost all Asian currencies went down in two phases. It was at that time that global economic soothsayers envisaged the fall of the rupee beyond retribution and even beyond the level of Rs.50 or more against the American dollar but were proved wrong. Their wisdom in stoutly refusing to concede the repeated yearnings of all lead players in the forex market for full convertibility of the rupee helped them as a major factor to contain the flight of the most needed foreign exchange reserve and the rupee retain its glow.
Tharcius S. Fernando, Chennai (HBL)
No comments:
Post a Comment