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Congress criticized the government as the rupee hit a record low of 80.79SEDI News

New Delhi: The Congress on Thursday hit out at the government over the rupee’s plunge to an all-time low of 80.79 against the US dollar, saying the middle and lower income groups were bearing the brunt of the currency’s devaluation.

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The rupee tumbled 83 paise on Thursday – its biggest one-day loss in nearly seven months – to close at an all-time low of 80.79 against the US dollar on Thursday due to the US Federal Reserve’s interest rate hike and its hawkish stance on investor sentiment. .

Criticizing the Center over the depreciation of the rupee, Congress spokesperson Gaurav Vallabh said it had added “fuel to the fire” by issuing the Reserve Bank of India notification on August 22.

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“As per this notification, the Reserve Bank of India allowed full capital account convertibility, in other words local currency can be exchanged for foreign currency up to a limit of one billion dollars,” he said.

Therefore, any company that has been profitable for the past three years can convert the local currency into US dollars up to a limit of one billion dollars, and this notification was issued when the rupee was breaking records and quoting daily, he said.

“Earlier, we thought that after entering the guide, the rupee would stop there, but the rupee is now entering the super guide as it has crossed the Rs 80 mark and is only 14 paise less than Rs 81. ” he said.

Instead of controlling this free fall of the rupee, the Narendra Modi-led government allowed Indian companies with profits of the last three years to denominate the Indian currency in US dollars for a billion dollars – Rs. 8,081 crore, Vallabh alleged.

“Why Modiji? On whose instructions, on whose guidance did you declare this? Anyone who has any interest in economy and finance can question this notification,” he said.

When the rupee depreciates, all imports, including crude oil, become more expensive. Be it medicines or essential commodities in the medical industry, the middle and lower income groups will bear the brunt of the fall in the rupee, he said.

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