According to Rajan, “We need arbiters like the IMF to tell us when domestic policies have international effects that do more harm than good.”
RBI governor Raghuram Rajan said that instead of issuing big bang unthinking reforms, RBI is focused on implementing steady regular reforms at a measured pace.
India has been taking regular steps toward full capital-account convertibility but still places restrictions on swapping rupees for other currencies. Rajan has recently called for full capital-account convertibility.
Speaking on the sidelines of the IMF/World Bank spring meetings on Thursday, Rajan said that IMF needs to play a more neutral role and eliminate currency manipulation wherever it can be found.
According to Rajan, “We need arbiters like the IMF to tell us when domestic policies have international effects that do more harm than good.”
The RBI governor further said that one cannot pull himself out of crisis by depreciating the exchange rate, and then point a finger at everybody else.
India is a current account deficit (CAD) country. Though CAD has shrunk, you either finance it through foreign direct investment which is probably the safest mode. But at some level you take other forms of financing also, Rajan said.
Make sure that you don’t take too much of anything and certainly taking too much of short term debt will lead to worries.
India has been taking regular steps toward full capital-account convertibility but still places restrictions on swapping rupees for other currencies. Rajan has recently called for full capital-account convertibility.
Speaking on the sidelines of the IMF/World Bank spring meetings on Thursday, Rajan said that IMF needs to play a more neutral role and eliminate currency manipulation wherever it can be found.
According to Rajan, “We need arbiters like the IMF to tell us when domestic policies have international effects that do more harm than good.”
The RBI governor further said that one cannot pull himself out of crisis by depreciating the exchange rate, and then point a finger at everybody else.
India is a current account deficit (CAD) country. Though CAD has shrunk, you either finance it through foreign direct investment which is probably the safest mode. But at some level you take other forms of financing also, Rajan said.
Make sure that you don’t take too much of anything and certainly taking too much of short term debt will lead to worries.
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