India's new central bank governor to step into eye of rupee storm
The new governor of India's central bank would be stepping into the eye of the storm roiling into the country's economy on Thursday. Raghuran Rajan is an economist who graduated from the University of Chicago. He would sit as the new head of the country's national bank in the middle of a plunging rupee.
The currency had fallen nearly 20% since May. This was after the third biggest economy in Asia got confronted with its worst crisis in 1990 to 1991. The efforts of the government to stabilize the rupee had delivered minimal effect to halt its steep slide. In fact, the currency had tumbled about 10% alone since the appointment of the new bank government last August 6.
Accordig to a Reuters report, there are few policy options that Rajan could take to revive the rupee. However, the new central bank governor should clarify details on the steps that the bank would take and the rationale behind them with the financial markets. . The report also added that economists and investors had been complaining about some pronouncements of which the bank, of which had caused unnecessary confusion.