FX interventions ‘excessive’, says RBI’s former regional head
India’s central bank nevertheless claims its actions to prop up rupee have been effective
The Reserve Bank of India’s interventions in the foreign exchange market have been excessive and unnecessary, one of the bank’s former regional heads tells Central Banking.
The RBI has sold off dollar reserves in recent months to prop up the rupee against a strengthening US currency. According to its own data, the bank’s FX reserves fell to $626 billion as of January 10 from a peak of $705 billion in late September.
However, Gurumurthy R, a former head of the RBI in Bengaluru, says these moves
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