Brexit impact: RBI will provide liquidity wherever necessary, says Raghuram Rajan
Seeking to allay concerns over Brexit impact on India, RBI Governor Raghuram Rajan on Friday said that the central bank will intervene in currency markets when necessary.
Zee Media Bureau
New Delhi: Seeking to allay concerns over Brexit impact on India, RBI Governor Raghuram Rajan on Friday said that the central bank will intervene in currency markets when necessary.
Adding that rupee's fall is lesser than many other currencies, Rajan said, “RBI is watching all markets, including currencies, and will provide liquidity wherever necessary”.
Rajan also added that the Reserve Bank of India is prepared for any eventuality.
Meanwhile, the government has said the economy has enough "firepower" to deal with the situation, even as stocks and the rupee took a massive plunge.
Stating that the government and the Reserve Bank of India (RBI) have been "working" on possible eventualities over the last several weeks, Economic Affairs Secretary Shaktikanta Das cited India's domestic fundamentals as the reason the country will not suffer from any long-term impact of Brexit.
In a historic development, the UK has voted to leave the European Union after 43 years as the 'Brexit' camp today took a seemingly unassailable lead over the 'Remain' camp in a down-to-wire referendum with far reaching implications for the world.
52 percent of the Britons in yesterday's vote favoured leaving the 28-member EU, while 48 percent supported staying in the bloc, according to a BBC forecast after counting of 70 percent of votes.