Bimal Jalan’s view

Posted by | August 16, 2003 | World | No Comments

Mr. Bimal Jalan, while giving one of his last speech as the RBI Governor of India, reitretated the fact that the foreign currency remittances in India, were more governed by the confidence in the Indian rupee than on any other factor. He is of the opinion that India is now having a fairly stable foreign currency exchange rate and the Domestic stock of bank deposits in rupees in India is currently close to $290 bn. He supported full capital account convertibility but was against the idea of residents converting domestic currency to foreign currency during time of crisis, saying this could lead to even greater crisis within the economy. Though he encouraged the residents to invest into profitable investments rather than keep their deposits idle.

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