INSUBCONTINENT EXCLUSIVE:
INR Vs USD: Rupee depreciation will obviously raise prices of imported goods, says IMF spokesperson.WASHINGTON: Compared to December 2017,
the real effective depreciation of Indian rupee is between six and seven per cent, says an IMF estimate
Broadly since the beginning of the year, Indian rupee "has lost about 11 per cent of its value in nominal terms vis a vis the US dollar",
said IMF spokesperson Gerry Rice, responding to a question on the fall of the Indian currency in the last few months
He, however, said the currencies of many of India's trading partners, including those in the emerging markets, too have depreciated against
"As a result, so far this year the real effective depreciation of the Indian rupees compared to December 2017 is, by our estimates, between
growth in the April to June quarter was again stronger than expected and the real depreciation of the rupee can be expected to reinforce
"On the other hand, the depreciation will obviously raise the prices of imported goods such as oil and petroleum products, potentially
putting an upward pressure on inflation," he said.The Reserve Bank of India has taken the rising oil import prices into the account when it
economy is recovering strongly from the two transitory disruptions in recent years - the Goods and Services Tax or GST and demonetisation
"Growth has been gradually accelerating in recent quarters, with strength in both consumption and investment, which have helped the
body will be reviewing its forecast for India, taking account of it and the recent global developments
there have been minuses of demonetisation, he said
"The demonetisation did hinder the money supply, creating cash shortages, which also somewhat dampened consumer and business sentiment," he
said, adding, it resulted in relative slowdown in growth
"On the other hand, its positive effects, I think, included enhanced digitalisation and higher formalisation of economy, which would help
"The growth in the number of new taxpayers, as documented by the Ministry of Finance, has been substantial in recent years," he said, adding
it is being monitored on an ongoing basis.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is
published from a syndicated feed.)
