Global rupee is not aimed at replacing dollar, says RBI guv Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das on Wednesday clarified that Mint Street's efforts towards globalising the rupee "are not intended to replace the dollar".

Das was speaking at the World Economic Forum Annual Meeting 2024 at Davos.  “There is no such thinking to move towards de-dollarisation... The dollar will continue to be the dominant currency.” 

Das said total dependence on one currency can expose global trade to the volatility, making a strong case for "multiple currencies".

Das said the central bank has managed to achieve currency stability, making it ideal for overseas companies to invest in India and domestic companies to tap markets abroad.

“India’s economy is expanding, with an increasing role in  international trade. Gradually and steadily, India has entered new markets, countries, and products, particularly in services. The objective is to offer the rupee as an alternative currency for settling international trade,” Das said at a fireside chat as part of WEF’s annual summit in Davos, Switzerland.

On inflation, Das said it was moderating and steadily approaching the central bank's 4% target while growth prospects remain robust. "Inflation has come under control and is within the band we have, which is 2% to 6%. Target is 4%," Das said in the chat organised by Invest India, the country's national investment promotion and facilitation agency.

Core inflation has started steadily coming down and gives confidence that monetary policy is working, he added. "RBI remains fully committed to bring inflation down to the target of 4%."