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Monitoring Mechanism for Effect of Strong Dollar

The amount and timing of remittances of dollars from abroad depend on many factors, one of which is strengthening of the dollar. The table below shows the average exchange rate of Indian Rupee vis-à-vis US dollar and the remittances that have flowed into the country since 2013-14:

Financial Year Indian rupees per US dollar Inward Remittances

(US$ million)

2013-14 60.50 69638
2014-15 61.14 69819
2015-16 65.47 65592
2016-17 67.07 61296
2017-18 64.45 69129
2018-19 (April-December) 69.74 58312
Source: Reserve Bank of India and Financial Benchmarks India Pvt. Ltd.

As per latest available Annual Report 2016-17 and 2017-18 of Ministry of Home Affairs, the foreign contribution of over Rs. 15 thousand crore was received in the year 2016-17, as against over Rs. 20 thousand crore in year 2015-16, under Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010). No reason has been stated for the decline in the foreign contribution in the Report.

The Government and Reserve Bank of India are closely monitoring the emerging external position including exchange rate of the rupee on an on-going basis and are calibrating policies or regulations to support robust macroeconomic outcome.

This was stated by the Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman in a written reply to a Parliament Question in Rajya Sabha today.

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