Sudden float of rupee was a bad idea: new CB Governor

Weighing in on the recent rupee float, which has caused severe hardships to people, as prices rose by many multiples within a matter of weeks, the newly-appointed Central Bank Governor Dr. Nandalal Weerasinghe said how it was done raises questions at so many levels. 

Former Central Bank Governor Ajith Nivard Cabraal, whose tenure came to an abrupt end last week, devalued the rupee on March 7 by about 5 percent and announced that the Central Bank would allow greater flexibility in the exchange rate going forward. 

This resulted in the rupee losing its value against the US dollar by as much as 60 percent in a single month.
The rupee traded at 310.88/321.49 to a dollar on Friday, compared to Rs.198.50/202.99 on March 4, prior to the float was announced. 

–Daily Miror

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