The rupee has held its ground in an extremely volatile environment: RBI governor

Reserve Bank of India Governor Shaktikanta Das said in his keynote speech at the annual FIMMDA (Fixed Income Money Market And Derivatives Association of India) event that the central bank has contributed to macroeconomic stability despite a volatile global scenario.

Here’s your 5-point guide to history:

1. Reserve Bank of India Governor Shaktikanta Das said the rupee has held its own in extremely volatile global financial markets, which have seen most major currencies sharply depreciate against the dollar.

2. “Since the Jackson Hole summit last week, markets have become extremely volatile and uncertain,” the governor said.

3. Mr Das said India’s $561 billion in foreign exchange reserves provide a “cushion” for “daily” shocks, which helps the central bank step in and protect the rupee from extreme volatility, noting that the rupee is in a sharp period have arranged depreciation in other currencies.

4. RBI’s policy is to prevent excessive volatility in the rupee or the exchange rate and also to anchor expectations regarding the currency’s devaluation, Mr Das said.

5. “Going forward, our monetary policy will be vigilant, light-footed and calibrated,” the governor said.

6. He said the health of our banking system is healthy and can prevent negative impacts from external headwinds.