RBI Governor D. Subbarao on Tuesday said the country’s foreign exchange reserves are “quite comfortable” and there is no threat to it from the Euro zone crisis.
“Our foreign exchange reserves are quite comfortable and are being managed efficiently with help from experts,” he said while talking to media on the sidelines of a function here.
Mr. Subbarao said the flight to dollar being witnessed following the euro zone crisis is a “natural reaction” when there is an uncertainty.
“It is shifting to safety and the path of natural reaction in financial markets,” the RBI Governor said, adding India need not be overly concerned about the development.
On inflation, Mr. Subbarao said it was not at a “peak level” but still at a “higher level” than what the apex bank would like it to be, adding that it would be taken into account along with growth while formulating the monetary policy.
Reacting to the just released figures of GDP growth, he said it was “quite encouraging but not surprising” and recalled that the bank in its annual policy statement had anticipated GDP growth of 7.5 per cent for 2009-2010.
Earlier, Mr. Subbarao inaugurated the RBI Archives Museum in the premises of a College of Agriculture Banking here and described it as a “treasure trove” in India’s economic history. He also said the Central bank would soon announce its Archival and Record Management policy to manage transition from paper to digital infrastructure.