The Reserve Bank of India (RBI) chief said on Tuesday that countries that allowed exchange rates to be determined by Markets could not then use the currency as a policy tool to fight inflation.
"If the exchange rate is to be market-determined, you cannot use it as an instrument for some policy or the other," RBI Governor Y.V. Reddy said at a seminar.
Reddy was responding to a question on why many countries were not using currency appreciation to rein in inflation.
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