Union Finance Minister, Arun Jaitley said that India has proven itself and emerged as a safe haven for investors around the world even after the Brexit. The country also avoided the adverse impacts of United Kingdom European Union membership stand.
Finance Minister said the rupee depreciated against the US dollar around one per cent for one day post-Brexit referendum while the currencies of emerging markets depreciated for many days.
But, on a cumulative basis the rupee has actually appreciated by 0.3 per cent on 19th of July over 23rd of June this year.
In a written reply, he said similarly the Sensex fell only on one day by around two per cent while the equity index of many other developed and developing countries fell by higher percentage for many days after Brexit referendum.
The Finance Minister said, India’s micro economic fundamentals are strong and the government and the RBI are closely monitoring the situation. Besides, the strong forex reserves position can provide a buffer against any temporary episodes of volatility in the domestic foreign exchange market.
He added RBI’s proactive liquidity management could ensure stability and calm in money markets.
Mr. Jaitley also said as regards the stock market, the government and the SEBI are keeping a constant vigil.