No Fixed Exchange Rate Target For Re: Rakesh Mohan

Bangalore, May 21: | Updated: May 22 2003, 05:30am hrs
Reserve Bank of India deputy governor Rakesh Mohan has said that the central bank is not having fixed exchange rate target for rupee and the current movement of exchange rate is quite adequate. Speaking to newsmen on the sidelines of World Banks annual bank conference on development economics here Mr Mohan said we never had a target for rupee and Indian market is responding quite adequately, to the kind of currency alignments taking place at the international level.

What we are interested is making orderly conditions and to maintain some stability in the market, he said responding to a question whether the central bank would intervene to check the upward movement of the Indian currency vis-a-vis the US dollar. We are continously watching and responding, he added.

On the impact of the rupee appreciation on the exports from the country especially the software sector Mr Mohan said we are an open economy and the companies are responding to the situation. The companies have to respond themselves. Market is not something that remains stationary, he pointed.

However, he said that the companies are responding very well to the kind of changes taking place in India and internationally.

He said export sector in the country is resilient enough to handle these problems by pointing out the export growth of 18 per cent acheived by the country last year despite the world trade clocking a meagre two per cent growth.