Raghuram Rajan: Not the time for central banks to devalue currencies

Raghuram Rajan: Not the time for central banks to devalue currencies

Rajan said the RBI is 'maintaining a close vigil' on markets and will 'take all necessary steps', including infusing dollars or rupees to ensure orderly conditions in markets. Photograph: (AFP)

Mumbai, India Jun 24, 2016, 02.31 PM (IST)
India's central bank governor on Friday reiterated his previous calls for central banks globally not to depreciate their currencies for competitive advantage and said it would be an issue he wanted to address with other central bankers.

The comments came as part of an interview with CNBC TV 18 on the global fallout from Britain's vote to leave the European Union.

Separately, Rajan issued a statement saying India's good economic fundamentals would allow it to overcome any "sharp corrections" in global markets.

"The Indian economy has good fundamentals, low short term external debt, and sizeable foreign reserves," Rajan said in the statement released on the Reserve Bank of India's (RBI) website.

"These should stand the country in good stead in the days to come."

Rajan added the RBI is "maintaining a close vigil" on markets and will "take all necessary steps," including infusing dollars or rupees to ensure orderly conditions in markets.

(Reuters)

STORY HIGHLIGHTS

Indian central bank governor added that the country's good economic fundamentals would allow it to overcome any 'sharp corrections'

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