On Tuesday, the Reserve Bank of India (RBI) slammed the International Monetary Fund (IMF) for criticizing its intervention in the foreign exchange market, which the global lender stated was excessive.
"During December 2022-October 2023, the Rupee-U.S. Dollar exchange rate moved within a very narrow range," the IMF noted in its report.
The multilateral agency claimed that RBI's intervention in the Rupee-US Dollar exchange rate "exceeded levels necessary to address disorderly market conditions."
Hitting back at the IMF which stated that India was trying to influence the valuation of the INR on the international currency exchange, the RBI asserted that the Washington-based financial institution's criticism of its policy was unjustified.
Hitting back at the IMF which stated that India was trying to influence the valuation of the INR on the international currency exchange, the RBI asserted that the Washington-based financial institution's criticism of its policy was unjustified.
"The RBI strongly believes that such a view is incorrect as, in their view, it uses data selectively," India's central bank said.
Interestingly, the INR weakened as much as 8 percent against the US dollar in 2022 before RBI intervened to stabilize it. Since December 2022, the Rupee has only suffered a 2% fall against the American greenback.
Notably, despite India being the world's fastest-growing major economy, the Western-dominated financial system led by the US has often clubbed it among nations that are potential currency manipulators.
India's name was removed from the infamous list in November 2022.
Notably, despite India being the world's fastest-growing major economy, the Western-dominated financial system led by the US has often clubbed it among nations that are potential currency manipulators.
India's name was removed from the infamous list in November 2022.