RBI is more hands-off now, says IMF official

THE RESERVE BANK of India (RBI) is taking a more hands-off approach to exchange rate under its new chief and should continue with it, Thomas Helbling, deputy director, Asia Pacific department at IMF said.

- ANUP ROY & SUBHADIP SIRCAR

“We have indeed seen more two-way flexibility in the exchange rate” since Sanjay Malhotra became the RBI governor, Helbling said at a press conference in Hong Kong on Friday, in response to a Bloomberg query.

“We have also seen less intervention.”

The Indian rupee is down about 2.5% this year and ranks among the worst performers in Asia. The fall has largely helped correct its overvaluation against trading partners.