The RBI Governor should be congratulated for the definitive statement he made at the IMF meeting. He said: “An agreement that currency interventions should not be resorted to as an instrument of trade policy should be central to a coordinated approach at a multi-lateral level” ( Business Line , April 18).

This is a far cry from the G-7 call for coordination in market intervention made a few weeks ago to stop yen appreciation. The subsequent operations did not yield the expected result. So was the unsuccessful attempt of the Japanese central bank last year to bring down the value of its currency. In fact, the currency gained further.

Taking India's case, we hear our interventionists, supported by the export lobby, appealing for the RBI intervention for the depreciation of the rupee. However, exports increased by more than 15 per cent during the 11 months of 2010-11 to over $200 billion, despite the rupee moving between Rs 47.5 and Rs 43.9.

The basic point is that the appreciation is a correction for the undervaluation of the rupee in terms of purchasing power in the international markets. If a few small and medium industries face problems, the remedial action should be fiscal, as was the policy correctly followed during the recent crisis years.

A. Seshan

Mumbai

Lokpal Bill

The stand taken by Anna Hazare that he will accept Parliament's decision to reject Lok Pal Bill is not welcome.

The freedom given to them by Hazare can be used by them to delay and ultimately reject the Bill. So, getting the Lokpal Bill passed is turning to be a distant dream..

V. S. Ganeshan

Bangalore

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