New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das said Friday that India’s financial sector was stable and that the worst of inflation was behind it.
He said the external debt was manageable, and therefore, the rise in dollar was no problem for India.
Last week, the rupee fell 0.1% against the dollar as the banking crisis in the United States unfolded, with the currency trading in a range of 81.6150 to 82.2975. The rupee ended at 82.5525 on Friday.
On the recent crisis in US banking – with the collapse of Silicon Valley Bank and Signature Bank – Das said this “drives home the importance of robust regulators, and sustainable growth.”
He said America’s banking woes “clearly shows risks of private cryptocurrencies to the financial system,” adding, that excessive deposit or credit growth was bad for the banking system.
The governor, however, was optimistic when he said that the “risk of a hard landing for the world economy has dissipated”.
During his address, Das called for “coordinated G20 attempts” to help countries with high external debt risks due to the rise of dollar.
The RBI chief, who was addressing the 17th K.P. Hormis Commemorative Lecture on Friday, also said G20 nations should provide climate-change financing to the most affected countries on war footing.
The RBI Governor has recently been adjudged “Governor of the Year” for 2023, an award given by the international publication “Central Banking”.
The award, announced Wednesday, recognised Das for captaining the financial markets through the turbulent periods of the COVID-19 pandemic and the crippling impact of the Ukraine war.
Awarding the 66-year-old, who is into his second term at the Mint Road, the publication said he helped maneuver the ship as it faced multiple obstacles since his appointment in December 2019.
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