Concerned over draining out of forex reserves due to high import of gold, the Reserve Bank of India (RBI) has constituted a committee to find out ways to reduce gold imports into the country. ?RBI has formed a committee which will come out with its report in two to three months recommending how to contain the gold demand,? said the RBI deputy governor, Harun Rashid Khan.
He was speaking to media persons in the sidelines of the Indian Chartered Accountants of India?s (ICAI) national conference, here on Saturday. Khan said that the focus should be on the domestic exploration of oil and gas as 70% of it were being imported while 100% of gold requirement was also coming from other countries.
On the volatility of the rupee-dollar exchange rate, the deputy governor said, ?We don?t target any exchange rate. Our approach is that there should be orderly movements and no volatility.? On the other hand to improve the reserve position, he said, ?We are encouraging capital flow into the country. Khan, however, avoided to take questions on the issue of rate cut saying, ?You cannot say when the rate cut will come. Wait for our September policy.? The Reserve Bank is scheduled to review its monetary policy on September 17.