March 1, 2021

Indian & World Live Breaking News Coverage And Updates

Indian & World Live Breaking News Coverage And Updates

No choice but to build reserves despite US monitoring list : RBI Governor

Share This :

Emerging markets economies (EME) such as India will have to continue to build reserves to mitigate spillovers of loose monitoring policies pursued by developed nation, even at the risk of being labelled currency manipulator by the US government, (RBI) governor on Saturday said.

“Under uncertain global economic environment, EMEs typically remain at the receiving end. In order to mitigate global spillovers, they have no recourse but to build their own forex reserve buffers, even though at the cost of being included in currency manipulators list or monitoring list of the US Treasury,” governor Das said while delivering the annual Nani Palkhivala lecture.

India’s foreign exchange reserves have crossed $580 billion. The US Treasury in December included India in the currency manipulator watchlist with nine others for one-sided intervention preventing rupee appreciation. A fast accumulation of reserves, about $100 billion in a year, was cited by the US Treasury. The governor though, made it abundantly clear that India will not be bothered by such cautions, as it is pursuing its policies to preserve its own financial stability from wild swings in capital flows.

“I feel that this aspect needs greater understanding on both sides so that EMEs can actively use policy tools to overcome the capital flow related challenges,” Das said, adding, is closely monitoring both global headwinds and tailwinds while assessing domestic macroeconomic situation and its resilience.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Share This :