India’s Rajan Says FX Intervention to Continue to Reduce Volatility

The Reserve Bank of India will continue to use currency intervention to reduce volatility in the country’s exchange rates, the bank’s governor, Raghuram Rajan, said on Monday.

“There is a school of thought that says: Let the exchange rate move wherever it will,” said Rajan, at the Inaugural Kotak Family Distinguished Lecture held at Columbia Law School in New York.

“That’s something we could do,” Rajan said. “But in emerging markets, with institutions not as strong as industrialized countries, you find there are collateral effects of both the capital moving in and going out.”

Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.