Brexit: Government & RBI ready with measures to curb volatility, says Finance Secretary Ashok Lavasa

By: | Updated: June 24, 2016 10:01 AM

Seeking to assure investors on Brexit, Finance Secretary Ashok Lavasa has said that the government and RBI are ready with measures to curb volatility.

Brexit, brexit news, brexit india impact, brexit britain referendumFinance Ministry had said India is prepared to deal with any eventuality with its sufficient forex reserves. (PIB Photo)

Seeking to assure investors on Brexit, Finance Secretary Ashok Lavasa has said that the government and RBI are ready with measures to curb volatility.

Meanwhile, Banking Secretary Anjuly Duggal has said that he doesn’t see Brexit impacting India in the medium or long term. RBI has intervened in the forex market with liquidity support, as Brexit fears have seen rupee diving. Rupee plunged 74 paise against US dollar to 67.99 in early trade.

Sensex nose dived 940 points as leads showed ‘Leave’ camp ahead in ‘Brexit’ referendum vote, Nifty tanked as much as 281.50 points.

Yesterday, Finance Ministry had said India is prepared to deal with any eventuality with its sufficient forex reserves.

Brexit referendum Live: BBC forecasts that UK has voted to leave the European Union

Economic Affairs Secretary Shaktikanta Das said the country is prepared to deal with any eventuality in the event of Brexit — which refers to the exit of United Kingdom from the European Union.

“Current indications are that perhaps Brexit won’t happen. In the event of Brexit happening, let me say very categorically that we are prepared to deal with all eventualities and I am saying so on the basis of three specific factors,” Das said.

Das listed sufficient foreign exchange reserve of $360 billion, India continuing to be an attractive FDI destination globally and minimal likely impact on India’s trade as the three factors.

In a historic move, Britain seems to have voted to exit the European Union! Supporters of Brexit have seized the lead in the vote count from Britain’s bitterly contested referendum, setting sterling on track for its biggest ever fall on world markets.

The British currency fell as much nine percent to a 30-year-low below $1.35, marking a sharper dive even than on ‘Black Wednesday’ in 1992 when financier George Soros was instrumental in pushing the pound out of the Exchange Rate Mechanism that predated the euro.

(With inputs from Agencies)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition