RBI junks IMF claim of bank's excessive forex intervention
The IMF criticizes the Reserve Bank of India's intervention in the foreign exchange market, but the central bank dismisses the charge. The IMF's report shows a divergence of views on the exchange rate and foreign exchange intervention between the IMF and Indian authorities. The IMF notes that the rupee-dollar exchange rate remained stable, suggesting excessive forex intervention. In response, the RBI states that the exchange rate is market determined and it intervenes only to prevent excessive volatility.
