New Delhi, Sept. 24: The rupee has been delinked from the pound sterling. Announcing this to-day, the Government of India said the exchange value of the rupee will be determined with reference to the daily exchange rate movements of a “select number of currencies of countries which are India’s major trading partners.”
The pound sterling will, however, continue to be used by the Reserve Bank of India as its “currency of intervention.”
The Government has been reviewing in the light of recent developments in the international currency markets, the present exchange rate arrangements under which the central rate for the rupee is designated in terms of pound sterling. It has come to the conclusion that in the altered circumstances, it is necessary to move over immediately to a new arrangement which, on balance may be expected to impart a greater measure of stability to the rupee’s exchange rate and in consequence to India’s international transactions.
The present decision to link the rupee to a basket of currencies replaces the existing arrangement under which the rupee has been floating along with the British pound since June 1972. Mr. C. Subramaniam, Union Finance Minister, gave an indication of the Government’s thinking on these lines recently.
Published – September 25, 2025 03:20 am IST
