India’s rupee will endure dollar strengthening, says Sitharaman

Bloomberg

The Indian currency will withstand the recent strengthening of the dollar, Finance Minister Nirmala Sitharaman said, reiterating a central bank forecast that the South Asian economy will grow at 7% in the year to March, 2023.
“The Indian rupee has performed much better than many other emerging market currencies,” Sitharaman said at a media briefing in Washington DC. The country’s central bank was working to contain the rupee’s volatility, she said, adding that the “rupee will find its own level.”
The Indian currency has plummeted to new lows against the US dollar in recent weeks amid fears of a global recession. While the Narendra Modi-led government is concerned about the global economic outlook and geopolitical challenges, it is confident the country will “stay on course,” according to a statement from the finance
ministry.
The International Monetary Fund (IMF) lowered India’s growth forecast to 6.8% this month on “significant” headwinds. The Reserve Bank of India (RBI) last month cut its GDP forecast to 7% from its earlier prediction of 7.2%.
New digital banking units to spur financial inclusion in India
India’s Prime Minister Narendra Modi announced the rollout of 75 digital banking units, or DBUs, as the federal government seeks to bolster financial inclusion in the country of
almost 1.4 billion people.
“People living in small towns and villages will find benefits like transferring money to availing loans,” Modi said on Sunday in an online to mark the launch of this new format of banking hubs in 75 Indian districts. “Digital Banking Units are another big step” towards making banking services more accessible to citizens, he said.
These DBUs — first announced in February — will be brick-and-mortar units and help Indian citizens in availing basic banking facilities such as opening bank accounts, applying for loans, transferring funds and paying taxes online, according to a government statement Sunday. ICICI Bank Ltd. and HDFC Bank Ltd., two of India’s largest private-sector lenders, announced setting up of four DBUs each in smaller Indian towns, according to separate statements from the banks. While ICICI has set up the DBUs at Dehradun, Karur, Kohima and Puducherry, HDFC is opening these at Haridwar, Chandigarh, Faridabad and South 24 Parganas.
India’s stockpile has tumbled $96 billion this year to $538 billion. The central bank said asset valuation changes account for 67% of the decline in reserves during the fiscal year from April, implying the rest came from intervention to prop up the currency. The rupee has lost about 9% against the dollar this year and hit a record low last month.