Amid the volatility of the Indian currency due to fear of COVID-19 spreading, Reserve Bank of India (RBI) Governor Shaktikanta Das said the country had enough foreign exchange reserves and assured that the central bank would take all measures needed to secure the economy against the challenges arising from the deadly epidemic.
“We will be able to respond to the challenges emerging out of the coronavirus epidemic,” Mr. Das said at an event organised by industry body Assocham.
The deadly virus that originated from China has spread to nearly 80 countries and has taken the lives of more than 3,300 people.
The rupee weakened by 46 paisa on Friday to end the day at 73.93 against the dollar as fears of the virus spreading continue to make investors nervous.
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Asserting that the country had enough resources to fight the crisis with a robust level of foreign exchange reserves, Mr. Das called upon the IMF to launch non-stigmatised currency swap lines to ease liquidity pressures globally. Latest data released by RBI show the country’s foreign exchange reserves at a record high level of $481.5 billion till the week ended February 28.
Mr. Das said all central banks were resolved to work in close coordination to fight the global slowdown due to the spread of the virus. The impact on India would be limited as the economy was not significantly integrated with the global value chain. “To that extent we will be insulated,” he added.
