The Minister of State for Finance pointed out that the main reason for the sudden depreciation of the rupee and the appreciation of the dollar was the payment of foreign payments which had been postponed for 180 days, within a short period.
Cabraal said he believes that the dollar will be depreciated to the level of Rs. 185 or 186 once the deferred loans are settled after getting converted.
At present, the government has restricted imports and only the essential commodities are imported, as a result, the exchange rate can be controlled satisfactorily, the Minister of State for Finance told the weekend newspaper.
The Central Bank had set the selling price of the US dollar at 194.66 rupees on Thursday (24 Dec).