RBI SEEKS TRANSPARENCY IN SETTLEMENT OF BAD ASSETS

According to RBI deputy governor Subir Gokarn Investors need not worry about the immediate volatility in the exchange value of rupee-vis-à-vis the US dollar in the wake of China allowing yuan to appreciate against the American currency. His optimism is based on hedging tools available. According to him, in a scenario where the hedging opportunity is available and relatively accessible, we should worry on the short-term impact of volatility.