Experts discuss rupee depreciation, forex reserves and inflation

The Russia-Ukraine war continues to intensify with no signs of de-escalation. After a brief respite, crude prices are rising again — back above $100 per barrel. Inflation continues to be at multi-decadal highs across many economies, raising the spectre of a recession in some parts of the world.

Back home, the rupee has depreciated beyond the 80-per-dollar mark, in keeping with what we are seeing across global currency markets, as the dollar continues to strengthen.

The central bank’s forex reserves have fallen to a 15-month low in the week ending July 8, standing at $580 billion.

Retail inflation has risen above 7 percent for three consecutive months, staying above the RBI’s tolerance band of 6 percent.

The government continues to maintain that India is in a better position relative to the global economy and is confident of achieving over 7 percent growth in 2022-23 fiscal.

Parliament is in session and while the finance ministry has reiterated the government’s intent to privatise two public sector banks this year, the banking amendment bill to pave the way for privatisation of PSBs is not listed for the session.What is however on the legislative agenda is the Development of Enterprise and Service Hubs (DESH) Bill, which will replace the 17-year-old SEZ Act.

To discuss the state of the economy, CNBC-TV18 spoke to SC Garg, Former Finance Secretart; Rahul Bajoria, MD & Chief India Economist at Barclays; and DK Mittal, Former Banking Secretary.