Currency manipulation charge reflects bilateral hegemony: RBI Governor

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Updated: July 27, 2019 7:13:49 AM

US President Donald Trump had called China and India, among others, currency manipulators.

Reserve Bank of India, Shaktikanta Das, IMF, foreign exchange market, exchange rates, US currencyWithout naming any country, Das called for “collectively ensuring multilateral principles and frameworks for orderly exchange rates and payment arrangements are not superseded by bilateral hegemony”.

Reserve Bank of India governor Shaktikanta Das said on Friday that charges of currency manipulation made by one country against another smacks of “bilateral hegemony” and asserted that ensuring orderly exchange rates was the responsibility of multilateral institutions like the IMF and not individual nations, in an apparent indication of the US. Das suggested closer coordination between monetary and fiscal policies across the world to cushion the impact of the growth slowdown.

US President Donald Trump had called China and India, among others, currency manipulators. India was included in the US’ currency watch list in 2017 after the RBI had added $52 billion in the forex reserves in the first half of the year through interventions in the foreign exchange market. Recently, however, India was removed from its monitoring list.

Also read: What went wrong with Modi govt’s sovereign bond plan

Without naming any country, Das called for “collectively ensuring multilateral principles and frameworks for orderly exchange rates and payment arrangements are not superseded by bilateral hegemony”. He was speaking at the launch of a book on “India’s Relations with the International Monetary Fund” by senior bureaucrat V Srinivas.

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