Raghuram Rajan becomes India’s central bank chief this week and the well-respected economist is expected to come under immediate pressure to restore confidence in the country’s battered currency.
Rajan succeeds Duvvuri Subbarao as Reserve Bank of India Governor under bleak circumstances: the Indian rupee has shed over 25 percent of its value against the U.S. dollar in the space of three months, the economy is growing at its slowest rate since 2009 and inflation is high.
India, Asia’s third largest economy, is facing its worst predicament since 1990-1991 when a balance of payments crisis led to a sharp devaluation in the rupee, economists say.
Rajan officially becomes RBI Governor on Wednesday and will take charge operationally on Thursday.
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