For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Policy measures may be warranted if Yuan falls further: RBI

By Religare
|

The RBI has said that policy measures may be warranted to counter any long-term plan by the Chinese to push the Yuan down to gain an edge on exports, media reported.

Commenting on the issue, Reserve Bank of India Governor Raghuram Rajan told the media, "If it's part of a process of getting competitive advantage through... longer-term depreciation, it has to be worrisome across the world, partly because you could have tit-for-tat actions."

 

"Part of the decline in India's exports which have dropped for the past eight months in a row - could be due to adverse currency movements," he added.

As per reports, the Yuan depreciation has led to a weakening of emerging market currencies across the board as international investors believe that sliding commodity prices and a slowing Chinese economy will erode the value of their investments.

Some economists are of the opinion that the Chinese devaluation is a policy move aimed at reviving its slowing economy through exports amid sluggish domestic demand.

Story first published: Friday, August 21, 2015, 23:00 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Find IFSC

We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more