Key Points
Former RBI governor Duvvuri Subbarao believes the internationalisation of the Indian rupee is still a long way off, adding thatIndia will need a more balanced and broader trade footprint failing which it "will be back depending on another currency."..
"Today, we are all hostage to the dollar".Speaking at an event in Mumbai, Subbarao said despite recent moves such as India's deal with Russia for discounted oil, not much headway has been made on challenging dollar's position as the world's dominant currency...
He acknowledged the increasing resentment against the dollar..
Subbarao referred to Prime Minister Narendra Modi's advice at the RBIs 90th-anniversary event, where Modi encouraged the central bank to make the rupee more globally acceptable...
One key step is to remove capital controls and for the RBI to adopt a more hands-off approach, Subbarao, who served as RBI Governor from 2008 to 2013, told the Hindu Business Line...
