India central bank chief says currency markets interventions are not always ‘black and white’

By Andrea Shalal

MARRAKECH, Morocco (Reuters) – Currency market interventions by emerging market economies should not be viewed “as a black and white story”, India’s central bank governor told Reuters on Friday.

Reserve Bank of India Governor Shaktikanta Das was referring to the U.S. Treasury Department’s regular foreign exchange report and similar research by the International Monetary Fund (IMF).

Das called on the United States and other countries and organizations to review their use of “labelling like watch lists,” underscoring that these comments were not directed solely at the Treasury.

“Emerging market economies will have to build reserves and central banks in emerging markets are required to intervene in the currency market from time to time to prevent excessive volatility,” Das said on the sidelines of the IMF and World Bank annual meeting in Marrakech.

“So therefore any labelling, any kind of labelling of currency interventions should not be a black and white story and you need to look at the nuances of it.”

(This story has been refiled to add the dropped word ‘bank’ in the headline)

(Reporting by Andrea Shalal; writing by Shivam Patel; editing by Jonathan Oatis)