Falling Euro will not bring forex down - RBI

Major reserves always in dollars, so no need for concern, says RBI deputy governor

PTI | May 21, 2010



The declining value of Euro will not affect Indian foreign exchange reserves as Euro was only a small component in forex, RBI Deputy Governor K C Chakrabarty said today.

"We are not much concerned. Dollar is strengthening against all currencies, including Rupee. So there is no concern at the moment", Chakrabarty told reporters on the sidelines of a function here when asked if the Greek debt crisis affecting markets world wide would impact India.

"In rupee terms, our reserves are going up. Our major reserves are always in dollar. How we are going to manage the currency, it is not an issue of public debate," he said.

On lendings to MSME sector in Kerala, Charabarty said he was not happy.

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