The rupee has depreciated in three of the four quarters of 2021
The Indian rupee recorded depreciation in three of the four calendar quarters, the Rajya Sabha finance ministry said on Monday. However, he also mentioned that it is one of the best performing currencies among other Asian currencies such as South Korean Won, Philippine Peso, Thai Baht and Japanese Yen.
In response to a starless question, Deputy Finance Minister Pankaj Chaudhary said that the rupiah depreciated (against the US dollar) by 0.05% in the January-March quarter and fell further by 1.64% in the April-June quarter. Although in the following quarter – from July to September – it recovered and recorded an appreciation of 0.13%, it depreciated again by 0.13% in the following quarter.
“The rupee’s exchange rate is largely determined by market forces of supply and demand. The Reserve Bank of India only intervenes to curb excessive volatility in the foreign exchange market and to maintain orderly conditions therein without targeting a specific level of the exchange rate,” Chaudhary said.
Capital released from LIC
In response to another question, Deputy Finance Minister Bhagwat Karad said in a written response that the paid-in capital of the IPO-linked LIC had crossed ₹6,300 crore by the end of December. “The government, at the request of LIC, allowed it to use the free reserves to increase its paid-in capital. As a result, the paid-up capital of LIC increased to ₹6,324.99 crore, as of December 31, 2021,” he said.
He also said that in FY20, LIC paid ₹2,610.75 crore in dividends to the Indian government out of profits relating to FY19, and no dividends were paid during in FY21 as the Insurance Regulatory and Development Authority of India (IRDAI) had requested insurers to refrain from paying dividends. payments on profits relating to the financial year ended March 31, 2020.
Meanwhile, in another written response, Chaudahry said over ₹1,200 crore in bonds, issued via the 19 and installment, was cashed in January of this year. “Details of encashment of election bonds by political party are not collected centrally at SBI,” he said while adding that bonds amounting to ₹324.36 crore were encashed by political parties in FY21.
Election bond can be purchased by a person who is a citizen of India or incorporated or established in India. A natural person can buy bonds, alone or jointly with other natural persons. Accordingly, no election bonds are issued to foreign entities.
February 08, 2022