RBI not to speed up external liberalization

By agencies   |   Friday, 24 June 2005, 07:00 Hrs
Printer Print Email Email
LONDON: Though IndiaÂ’s foreign exchange reserves are adequate, the Reserve Bank of India is unlikely to yield to pressures for significantly accelerating the pace of external financial liberalization, its Governor Y Venugopal Reddy has said.

"Reserve adequacy may be a necessary condition but not a sufficient one for speeding up financial liberalization," the RBI governor said here yesterday while delivering a lecture on Overcoming Challenges in a Globalizing Economy - Managing IndiaÂ’s External Sector here.

On the path of integrating the Indian financial markets with the global financial system, Reddy said "we have chosen to proceed cautiously and in a gradual manner, calibrating the pace of capital account liberalization with underlying macroeconomic developments, the state of readiness of the domestic financial system and the dynamics of international financial markets."

He noted that the adequacy of foreign exchange reserves was often cited as a consideration for significantly accelerating the pace of financial liberalization. "Foreign exchange reserves are, in the final analysis, a cushion to withstand both cyclical and unanticipated shocks."

SPOTLIGHT
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..