FM to meet FIIs Saturday, discuss current economic situation

FM to meet FIIs Saturday, discuss current economic situation New Delhi: Finance Minister P Chidambaram is likely to meet FIIs in Mumbai Saturday in a bid to allay apprehensions about India's current economic situation and appraise them of steps taken to boost growth and stabilise the rupee.

The Minister, according to officials, will also be updating the FIIs about decisions taken by the government and the RBI to arrest the value of rupee which had touched the lifetime low of 65.56 to a dollar yesterday.

Besides the Minister, Economic Affairs Secretary Arvind Mayaram and Additional Secretary (Capital Markets) K P Krishnan will also be present at the meeting.

The minister is also scheduled to meet bankers.

These meetings assume significance in backdrop of the volatility on the stock and foreign exchange markets.

Chidambaram yesterday underlined the need for communicating the decisions of the government in an effective manner to the markets and the stakeholders.

He is likely to reiterate the commitment of the government of not imposing any capital controls or reverse the direction of capital account convertibility.

Chidambaram during a press conference yesterday had said, "..There is no cause for the panic that seems to have gripped the currency markets that is feeding into other markets.

"We are confident that stability will return to these markets and we can get on with the task of promoting investment and growth."

He had also laid emphasis that there was no reason for "excessive or unwarranted pessimism" and said that the recent liquidity control measures taken by the Reserve Bank to reduce volatility in forex market and quell speculation would be revisited with return of stability.

PTI