Rupee volatility is "liquidity problem, not solvency", fix needs $70-100 billion capital visibility: Neelkanth Mishra
New Delhi, June 7 -- As the Indian Rupee faces persistent volatility against the US Dollar, renowned economist and newly appointed Executive Director at the World Bank, Neelkanth Mishra, has offered a clear diagnosis: the current market turbulence is a "liquidity problem," not a fundamental solvency crisis.
Speaking with ANI, Mishra argued that the depreciation is less a reflection of India's economic health and more a symptom of a "stampede" driven by panic among real-economy players.
Mishra said that with India's foreign debt/GDP very low, he argued the priority should be to end currency market panic quickly and provide visibility of $70-80-100 billion in capital inflows over the next two years.
Mishra emphasised that while the exact...
Click here to read full article from source
To read the full article or to get the complete feed from this publication, please
Contact Us.