New Delhi: Addressing the meeting of the National Council of industry body CII (Confederation of Indian Industry), Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said that with foreign exchange reserves of $ 677 billion, India will face any challenge. and is in a better position to finance the current account deficit. The country's foreign exchange reserves have increased by $270 billion in the last three years. Das further said that according to the latest data, the foreign exchange reserves are $ 622 billion. Along with this, $ 55 billion is in the form of foreign exchange contract assets (forward assets). This asset will mature from time to time every month. He further said, "We have foreign exchange reserves of $ 677 billion as of today.
India is in a better position to deal with any impact arising from global factors or to finance the current account deficit. Currency reserves give stability and confidence in any economy. On the suggestion that a small part of the reserves should be used to finance the needs of the economy, Das said that this advice is not suitable. He said that, 'Using currency reserves to meet the various needs of the economy is not a suitable suggestion, according to the assessment of RBI, India should not do this and that is why we are not in support of it.' Das further said that it may have some effect, but the RBI is confident of maintaining the stability of the Indian currency. He said that RBI's policy is to intervene in the foreign exchange market to prevent excessive volatility. Das also said that the Indian economy is in a better position and is doing well on the external front as well.
He further said, 'We live in an uncertain world and there is no place for complacency. We need to be alert. We are keeping an eye on it.' RBI Governor said that RBI is also keeping a close watch on the price of crude oil and commodities. Regarding rising inflation, Governor Das said that this is the effect of the ongoing crisis in Europe. He has rejected the situation of rising inflation and declining growth rate (stagflation). He said that India's growth rate for the current financial year can be 8.9 percent. He has completely denied stagflation.
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