The Reserve Bank of India has been acting in a proactive and pragmatic way to alleviate any impact on the Indian economy in the backdrop of global headwinds reflected in ultra inflation in most of the key economies and the resultant disruptions in world trade, ASSOCHAM has said.
”The Reserve Bank of India has been taking the challenges head on, when it comes to ensuring financial stability of the country. The recent steps including international trade settlements in INR and relaxations with regard to inflows of the US dollar, show the continuous vigil by the Indian central bank on the unfolding global economic events, ” ASSOCHAM Secretary General Mr Deepak Sood said.
The RBI has announced additional measures for invoicing, payment, and settlement of exports / imports in INR. Special Rupee Vostro accounts would be used through authorised channels of Indian and partner countries’ banks for the mutual trade outside the dollar arrangement.
He said the strengthening of the US Dollar Index to record levels , has created an imbalance in the flow of global funds into the perceived havens, but has been creating challenges for several economies of the world, including the developed nations.
” RBI is on spot when it pointed out that depreciation of INR by about 4 per cent against the US dollar during the current financial year is modest compared to other emerging and advanced economies, ” Mr Sood said,adding ”our foreign exchange reserves in the range of USD 600 billion are large enough to act as a cushion against the unfolding situation”.
Besides, the latest sharp correction in prices of commodities including crude oil, would be a major positive for the Indian economy, Mr Sood said.
The ASSOCHAM Secretary General said the initial feedback from India’s top services export companies do not suggest any indication of negative impact on the pipeline of their order books. ” Our top software and service exporters too are in a nimble mode and are ready to work with their global clients to deal with the challenges, exacerbated by swift tightening of monetary policy by top central banks”.