India Has Adequate Foreign Exchange Reserves To Mitigate Any Crisis: Jaitley
New Delhi: Former Finance Minister Arun Jaitley has said India possesses enough foreign exchange reserves to tackle any uncertainity in the currency market. The Union Minister’s remark comes a day after the Indian rupee fell to an all-time low of Rs 70 against the US Dollar.
Taking to micro-blogging site Twitter, Jaitley wrote that the government is closely monitoring the situation and is fully prepared to deal with any volatile situation that may arise due to “unsettled international environment”.
Jaitley further stated that India’s foreign exchange reserves are sufficient by global standards to attenuate any undue volatility in the foreign exchange market.
Notably, the Indian currency on Tuesday tumbled to a record low of 70.08 against the dollar due to a sharp fall in the Turkish Lira which has affected all major Asian economies. However, the Indian Rupee has been the worst hit after it touched the Rs. 70 mark against a dollar, first time in history.
This comes in the wake of the dwindling value of Turkish Lira and increasing tensions between the USA and Turkey. The downward dip of the Indian Rupee is making it hard for the Reserve Bank of India to keep the CPI inflation in check.