Global currency

This refers to ‘Globalising the rupee’ (March 1). A currency attaining premier status as a settlement currency worldwide requires meeting some specific criteria. Firstly, it should maintain an export surplus with a majority of its trading partners. Secondly, it must serve as an invoicing currency for trade transactions with numerous countries. Thirdly, these countries should hold the currency in their reserves. And, finally, the nation associated with the currency should be industrially developed.

The US dollar uniquely fulfils all these conditions, earning it the status of a dominating global currency, despite the US running a trade deficit with most countries including India.

The rupee, while currently serving as an invoicing currency for trade transactions with Russia, does so out of necessity.

The future status of the rupee as a preferred currency hinges on developments post the complete lifting of sanctions on Russia.

Srinivasan Velamur

Chennai

Maternity benefit

This refers to ‘The piquant case of a successful maternity benefit scheme’ (March 1). Though it is good to note that there is a tremendous rise in the number of hospital deliveries, not much progress is made in antenatal care. It is also a matter of concern that there remains a huge gap in utilisation of ANC across various population groups.

With many rural households getting covered under Jan Dhan Yojana and MGNREGA, disbursal of cash incentives through direct benefit transfer to the expectant and lactating mothers must not be an issue.

GS Santharam

Madurai

Share in taxes

According to the Controller General of Accounts (CGA), over ₹8.20-lakh crore has been transferred to State Governments as devolution of share of taxes by the Centre. This is revenue expenditure for the Centre, but revenue receipts for the States. If the State governments use the amount to create assets or transform it to capital expenditure, then it can enhance employment, output and income in the country. On the contrary, if they spend it on paying interest on past loans or collection of taxes, they are squandering precious monetary resources.

S Ramakrishnasayee

Chennai

Sterlite saga

‘SC dismisses Vedanta plea to reopen copper plant’ (March 1) is not only perplexing but also contradictory to its own recent order allowing Vedanta to refurbish the Thoothukudi Sterilite plant. If one goes by the verdict that environmental and human health issues are of primary concern, closure of the industrial unit is not the ideal option. Don’t we have the technology and knowhow to ensure stringent pollution control measures as also bring the plant under the supervision of the pollution control board?

Rajiv Magal

Halekere Village. Karnataka

Traits of a regulator

This refers to ‘The dharma of a regulator’ (March 1). Apart from the whole host of characteristics mentioned in the article, an excellent regulator must possess hindsight as well as foresight, without which decisions and directions could go awry. The regulator should have the broadest vision possible to cater to the genuine and fair expectations of most of the regulated members, as it is impossible to address all the expectations satisfactorily.

Kosaraju Chandramouli

Hyderabad

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