Rs 100/$ Just a Number, Right Moment to Let Rupee Depreciate: Finance Commission Chairman to RBI
Arvind Panagariya said defending the currency would drain reserves and that India can absorb some inflation from depreciation.
- On Thursday, May 21, 2026, Sixteenth Finance Commission Arvind Panagariya urged the RBI to abandon the "psychology of ₹100 per dollar" and allow the rupee to depreciate rather than depleting reserves.
- With the rupee nearly touching ₹97 per dollar on Thursday, Panagariya warned that defending the currency against sustained oil shortages would "continue to bleed the reserves until they are exhausted."
- Panagariya dismissed dollar-denominated bonds and high-interest NRI deposits as "costly instruments," arguing India's economy is better positioned than in 2013 to absorb depreciation with lower inflation levels.
- The rupee rose 18 paise to 96.18 against the dollar on Friday, supported by Brent crude cooling near $104 and confidence in the RBI's planned $5 billion buy-sell swap auction for May 26.
- Markets also found stability after State Marco Rubio hinted at constructive diplomatic talks regarding Iran, while Industry Minister Piyush Goyal announced the government is evaluating additional measures to contain the widening Current Account Deficit.
10 Articles
10 Articles
Rs 100/$ just a number, right moment to let rupee depreciate: Finance Commission Chairman to RBI
The Reserve Bank of India (RBI) should not let the psychological barrier of Rs 100 per dollar dictate its monetary strategy, and the right approach under current conditions is to allow the domestic currency to weaken, according to Arvind Panagariya, Chairman of the 16th Finance Commission and Former Vice Chairman of NITI Aayog.
Arvind Panagariya Appeal to RBI: Chairman of the 16th Finance Commission and Indo-American economist Arvind Panagariya has expressed his views on the falling value of the rupee. Posting on X, he made an important appeal to the Reserve Bank of India. He said that the Reserve Bank of India should not be allowed to set its policy with a mindset of 100 rupees per dollar. 100 is just a number, like 99 and 101. Whether the oil shortage is short-term o…
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Can The RBI Prevent The INR From Hitting 100 Per USD?
BitcoinWorld Can the RBI Prevent the INR from Hitting 100 per USD? The RBI defense strategy against the INR 100 per USD psychological barrier is a critical concern for market participants as of May 2026, driven by geopolitical instability in West Asia and surging crude oil costs. While the Reserve Bank of India (RBI) possesses the substantial financial firepower required to shield the rupee from this milestone, current market indicators suggest…
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