Rising rupee can be used to pay off foreign debts. We can buy currency from the market and reuce the foreign debt. we can close some small deals. also, we can have dollar kept with us for any emergency situation. It might be possible that dollar might be quite high at that time of emergency and same amount of currency may cost much dearer in Indian Rupees. Also, as stated by Petroleum Minister, there is no need for price rise of fuel. When the price was last raised, with $75 a barrel, rupee was at around 45 Rs/Dollar. Now it stands at 40 Rs/Dollar. Govt should think of this aspect.
RE:We can use this opportunity
by Srinivas Miriyala on Jul 26, 2007 04:30 PM Permalink
I do not agree with your views. Rising rupee effect is more than just paying oil bills. I think India should peg the currency value the way China does. That will boost our exports. As long as our exports are growing we will be able to pay for Oil bills. To tame the inflation govt. can pump in that extra money into giving subsidy on petrol, diesel etc. The difference is so huge they can give subsidy to farmers and on transportation that will bring down inflation.
