Reserve Bank of India Governor Shaktikanta Das mentioned on Thursday that the nation’s Current Account Deficit (CAD) would be sustainable and will be financed by normal capital inflows.
India’s CAD widened to $23 billion within the third quarter ended December 2021 (Q3FY22), which was 2.7 per cent of the nation’s Gross Domestic Product (GDP) on account of increased commerce deficit.
The CAD was $9.9 billion (1.3 per cent of GDP) within the second quarter ended September 2021(Q2FY22) and $2.2 billion (0.3 per cent of GDP) a yr in the past (Q3FY21).
With international crude oil costs surging above $100/bbl – first time after 2014 – there are issues that the CAD may widen past sustainable ranges.
Speaking at an occasion organised by CBIC, Das reiterated the central financial institution’s views on cryptocurrency saying that there are dangers to monetary stability.
“As far as the government is concerned, I can’t reply. The government has announced it will come out with a discussion paper. RBI has conveyed its views to the government. RBI is very clear there are huge risks to financial stability,” he mentioned whereas answering a query on what’s the RBI imaginative and prescient to be used of crypto in authorities for paying taxes in addition to procurement by the federal government.