He said the current account deficit (CAD) is expected to be modest and comfortably financed. A look at what he said on a range of issues:
RBI Governor Shaktikanta Das Friday said the country’s foreign exchange reserves, which once again crossed the $600 billion market on December 1, will provide a cushion against any external shock. He said the current account deficit (CAD) is expected to be modest and comfortably financed. A look at what he said on a range of issues:
On forex reserves
“India’s foreign exchange reserves stood at US$ 604 billion as of December 1, 2023. Foreign exchange reserves at $604 billion provide a strong buffer against global spillovers. We remain confident of meeting our external financing requirements comfortably.”
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On rupee
“The Indian rupee has exhibited low volatility compared to its EME (emerging market economy) peers in the calendar year 2023, despite elevated US treasury yields and a stronger US dollar. The relative stability of the Indian rupee reflects the improving macroeconomic fundamentals of the Indian economy and its resilience in the face of formidable global tsunamis.”
On open market operation (OMO) sales
“The need to undertake an auction of OMO sales has not arisen so far. We have not said that it is off the table. All that I have said in the statement is that the need to deploy this instrument has not arisen. Beyond that, I have not said that it is off the table. That instrument remains very much on the table. That is always in Arjuna’s quiver. It will be used if and when required.”
On RBI, Bank of England MoU
“Recently, the RBI and the Bank of England have signed a Memorandum of Understanding on cooperation and exchange of information relating to the Clearing Corporation of India Ltd (CCIL), a central counterparty (CCP), regulated and supervised by the Reserve Bank.
The MOU will enable the Bank of England to assess CCIL for recognition as a third country CCP for UK based banks to clear their transactions through CCIL. This MOU is based on principles of mutual cooperation and trust among regulators of both countries. We hope regulators of other jurisdictions also accept these principles.”
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First published on: 08-12-2023 at 23:34 IST
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