Ravi K on ex-CB buying foreign property: A response

I read an interview with the Finance Minister recently where he gave the reason for the massive depreciation of the rupee as being due to the fact that the previous Central Bank Governor Nivard Cabraal had bought properties in the US and Brazil. I also noted a recent newspaper report where it was said that the Government was taking over these two properties from the Central Bank, and that the cost and current market values of the properties were as seen in the table. 

This makes a total net gain of Rs. 511,300,000 to the Government as a result of Governor Cabraal’s action. Being a small businessman myself, I feel he would have taken advantage of the low property prices at the time in those countries. 

Ravi, why don’t you give over to Cabraal? We don’t want to hear you and your boss Ranil lamenting and lamenting and blaming the previous Government. You are always grumbling. Either get on with the job intelligently, or give it to someone who can. But don’t take us for fools, by saying that the purchase of two properties for about $ 7 million in 2011 and 2013 out of Reserves of over $ 7,000 million is the reason for the rupee to depreciate in 2015 and 2016.

Kumaran Balasingham

Washington DC