Many tweeps are circulating this misleading video of Sushma ji condemning the falling rupee, in the current context. Today again INC IT cell member @srinivasiyc has shared this video.
Let's fact-check the context behind her speech.
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Let's fact-check the context behind her speech.
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This particular loksabha speech, where Sushma ji is lashing out at the center govt (UPA-2), is dated back to 29th Aug 2013.
You can find it on YouTube with the title "Loksabha : Smt. Sushma Swaraj on downfall of Indian Currency: 29.08.2013".
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You can find it on YouTube with the title "Loksabha : Smt. Sushma Swaraj on downfall of Indian Currency: 29.08.2013".
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Let's see what was happening to the global currencies wrt to USD when this concern was raised in LS. In just last 10 days (18 to 28 Aug'13) the value of INR (to USD) fell from 61.65 to 68.83, i.e. 12% while other currencies (e.g. EUR, GBP, AUD, CAD) hardly had any movements.
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Note that fed rates% were slashed (2008 recession time) & not changed until 2015. There was hardly any other major global factor during UPA 2.0 (2009-2014). Post-2016 there is a gradual rise in rates, until covid crisis in 2020-2021.
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Now look at the latest data. From Mar to Sep'22 USA is keep rising rates from (0.25% to 3.25%) to tame the uncontrollable inflation triggered by post-covid impact and then Russia/Ukraine conflict caused disrupting supply-chain into the food & energy market.
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This chart by Prof. @SubramanianKri further explains that while all other global currencies index depreciated -10% to -22%, US$ index climbed to 19% and INR is still holding at -8% (year-to-date data).
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All these unprecedented global factors, EU energy crisis, zero-covid-policy China, INR is performing relatively better. Now if Tom is the tallest guy in the class, doesn't mean rest-of-all are left short-heighted.
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While IMF to all agencies are applauding India for performing better, the opposition is running out of ideas.
Lastly to understand FM's statement that "INR is not falling but USD is strengthing", doesn't even need an understanding of the economy but simple maths & logic.
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Lastly to understand FM's statement that "INR is not falling but USD is strengthing", doesn't even need an understanding of the economy but simple maths & logic.
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