RBI Governor Shaktikanta Das on Friday said that there was 67% decline in the Indian forex reserve this year due to a change in the valuation of the foreign exchange rate.
Outlining his monetary policy statement, Das said that the Reserve Bank of India had decided to hike its key lending rate by 50 basis points to 5.90 %, a three-year high. Das said that the decision to raise the interest rate was influenced by the turmoil in global markets and aggressive monetary policy adopted by countries around the world.
Das said that the US dollar had strengthened to a decade high, adding that the RBI did not have a fixed exchange rate for the rupee.
Das said that the world economy was facing extraordinary challenges after the Covid pandemic and the Ukraine war. He said that the world economy was facing another round of turmoil in the wake of the tightening monetary policy by countries around the world.
Comments by Das came amidst the Indian rupee sharply losing its value against the US dollar.