Central Banks
India’s Das Tames Volatile Rupee With $689 Billion Reserves
- Governor’s term expires in December; successor not yet picked
- Rupee is one of the least volatile emerging market currencies
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India’s central bank chief Shaktikanta Das has pulled off a rare balancing act: Clamping down on volatility in the rupee while allowing it to drift lower to aid Prime Minister Narendra Modi’s export ambitions.
The Reserve Bank of India’s foreign-exchange reserves have swelled to almost $700 billion in a move reminiscent of China’s accumulation two decades ago. Frequent interventions under Das, whose six years in office are due to end in December, have transformed the rupee from Asia’s most volatile currency to one of the least.