New Delhi, Aug 12 (IANS) Criticised by some for his conservative stance during his tenure as the Reserve Bank of India (RBI) Governor, Raghuram Rajan on Friday added one more area, which he alluded has vindicated his position — the control over the value of the Indian rupee.
“Many people had predicted that the rupee will hit Rs 100 to a dollar,” he said at an event associated with the book launch of his predecessor D. Subbarao, as if to say he has proved the naysayers wrong.
Even though the rupee had dropped to an all-time low, very close to the Rs 70 to a dollar mark, earlier this year, it has not gone anywhere beyond that. The Indian currency currently rules at around Rs 66.88 to a dollar.
Rajan’s has maintained that inflation control — which he said was the prime focus of the central bank, and must always be so — had been the area he had focused on.
During his talk, organised by CNBC-TV18, Rajan said Subbarao’s book — “Who Moved My Interest Rate?” — candidly spoke about the dilemma which a central bank governor faces in pursuing policy, adding his own position was similar when he took over three years ago.
“My first priority after taking over as governor was to change narratives,” he “aid.
“It’s only history that tells us what the clear line was. At that time we do not see the clear line,” he added.
Rajan, whose term will expire on Septermber 4 this year, had earlier said that 90-95 per cent of the tasks he had set for himself had been completed, though he would have also liked to finish the remaining agenda, notably the clean-up of banks’ balance sheets.
“While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as governor ends on September 4, 2016,” he had said in the letter of June 18.