Controlling Inflation Is Primary Objective For South Asia: RBI Governor

For South Asian nations, controlling inflation is of utmost importance as concerns about growth and investment prospects may increase if pricing pressures continue to be elevated, Shaktikanta Das, Governor, Reserve Bank of India (RBI) said on Friday.

Das said that the Covid-19 outbreak and the crisis in Ukraine have exacerbated policy problems for the area while speaking at an event hosted by the International Monetary Fund in New Delhi.

He also claimed that the RBI and the Indian government are in talks with South Asian nations on allowing cross-border trade in rupees. 

Furthermore, he added that the RBI is proceeding extremely cautiously and attentively in this regard since the Central Bank Digital Currency (CBDC) is currently in its experimental phase

South Asian nations were affected by the Asian Financial Crisis of 1997 due to sharp increases in capital flight and pressures on the exchange rate.

The South Asian nations have prioritised sound macroeconomic policies throughout time as a crisis prevention method, Governor Das stated.

 At a previous event, IMF Deputy Managing Director Antoinette Sayeh stated that although India is in a relative "bright spot" in the global economy, it has to expand its current strength in services exports to include exports of manufacturing, which provide many jobs.