India central bank chief says currency markets interventions are not always 'black and white'

Shaktikanta Das was referring to the US Treasury Department's regular foreign exchange report and similar research by IMF

Reuters
Published : 14 Oct 2023, 04:50 AM
Updated : 14 Oct 2023, 04:50 AM

Currency market interventions by emerging market economies should not be viewed 'as a black and white story', India's central bank governor told Reuters on Friday.

Reserve Bank of India Governor Shaktikanta Das was referring to the US Treasury Department's regular foreign exchange report and similar research by the International Monetary Fund (IMF).

Das called on the United States and other countries and organisations to review their use of 'labelling like watch lists', underscoring that these comments were not directed solely at the Treasury.

"Emerging market economies will have to build reserves and central banks in emerging markets are required to intervene in the currency market from time to time to prevent excessive volatility," Das said on the sidelines of the IMF and World Bank annual meeting in Marrakech.

"So therefore any labelling, any kind of labelling of currency interventions should not be a black and white story and you need to look at the nuances of it."