India Reserve Bank’s Gokarn Says Swiss Franc Move Is Temporary

Reserve Bank of India Deputy Governor Subir Gokarn comments on Switzerland’s central bank’s move to cap the franc’s gains. The Swiss National Bank yesterday imposed a ceiling on the franc of 1.20 versus the euro, the first such move in more than three decades, and pledged to defend the target with the “utmost determination.”

Gokarn spoke to reporters in Mumbai.

“Switzerland has decided that the burden of inflows as a result of the turbulence around them is putting pressure on their currency in a way that is disrupting their real sector. So they have decided to react.

‘‘The underlining view is that this is a transitory phase and this is not in any way an abandonment of their fundamentally floating exchange-rate system. It is an attempt to deal with temporary factors.

‘‘Our view on exchange rate management is essentially the same. We are looking to not target the exchange rate.

‘‘If there is pressure of any kind that disrupts the real sector we would consider intervention. We have not faced that situation so far, so our stance remains.’’

To contact the reporter on this story: Anoop Agrawal in Mumbai at

To contact the editor responsible for this story: Hari Govind at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.