15 March 2022 05:20 am
The Finance Ministry is yet to come up with a clarification on the additional Rs.20 it promised per migrant dollar as an Avurudu bonus.
Two days after the Central Bank floated the rupee, the Finance Ministry announced the incentive for worker remittances but the latter failed to clarify neither the rationale nor the specifics of how it is going to be implemented, particularly with a floating exchange rate.
With the absence of clear communication from the Finance Ministry, the banks and migrant income receivers remain in limbo over the incentive announced for this Avurudu season.
With the rupee has now found its value against the US dollar since the float on Monday, it makes no sense to give an incentive for remittances, as the present foreign exchange rate has effectively killed the informal channels, which offered a higher rate for remittances and dollar changes.
There is an increasing gulf between the policies of the Central Bank and Finance Ministry and it became evident lately with the statements and actions and non-actions came from the two institutions.
The Finance Ministry is yet to implement seven out of the eight points of the policy package proposed by the Central Bank a fortnight ago to complement with the policies implemented by the latter, so that the economic shock of the policy measures would be equally absorbed by the rates and fiscal department of the government.