USIRC Calls for Tough Action Against Speculators in Currency Market

0

The US-India Relationship Council (USIRC) is advocating for strict measures to be taken against speculators and manipulators in the currency market, particularly in the non-deliverable forward (NDF) market. Their concern is rooted in preventing any negative impact on the relationship between the US and India.

Despite India’s solid economic fundamentals, including low domestic inflation, interest rates, and a growing GDP, the Indian Rupee (INR) has been facing depreciation against the US Dollar (USD) in both the regular currency market and the NDF market.

Interestingly, the INR is the most traded currency in the NDF market, even though India ranks fifth in terms of GDP growth rate and volume. The Reserve Bank of India (RBI) has identified around 88 entities involved in trading INR in the NDF market, signaling the presence of speculators and manipulators.

These actors could potentially have ties to anti-India forces, which could lead to increased exposure of the Indian economy and the INR to risks in the market. This situation may prompt Indian authorities to limit their dependence on the USD, impacting the economic relationship between India and the US.

USIRC is advising both the outgoing and incoming US administrations to be vigilant about these challenges, emphasizing the importance of maintaining strong fundamentals in their economic relations rather than relying on artificial measures like currency speculation and manipulation.

Ultimately, a stable and secure US-India relationship is crucial not only for the growth of the two nations but also for countering monopolistic practices by global powers like the CCP. It is important for both countries to work together to address these issues and ensure a positive and mutually beneficial economic partnership.

Leave a Reply

Your email address will not be published. Required fields are marked *