India's rupee plunged on Tuesday after the country's central bank chief quit following a dispute with the government that analysts say raises fears about its independence.
Urjit Patel stood down as governor of the Reserve Bank of India (RBI) on Monday evening following months of tensions with Prime Minister Narendra Modi's government over interference in policy.
Patel cited “personal reasons” for his decision but experts and media reports have said he was annoyed by New Delhi's repeated efforts to impose its influence.
The rupee sank more than one percent against the dollar, with speculation swirling that an RBI intervention kept it from falling further.
Indian stocks saw volatile trade, with the benchmark Sensex in Mumbai falling sharply at the opening bell before rebounding to sit slightly higher in the afternoon.
Analysts say Patel's departure, extremely rare for a central banker before the end of his term, is evidence that the RBI's autonomy is under threat.
“This is a clear signal of an eminent institution being attacked and its independence being chipped away one step at a time by the government,” independent economist Ashutosh Datar told AFP.
“It is obvious Patel resigned because he faced a lot of pressure on issues such as bad loans, shadow banking, and the central bank's independence.
“This will reflect badly on the government and probably affect the central bank's sovereignty in the long run,” he added.
- AFP
You can share this post!
Content
Canadian Envoy summoned over Tamil Genocide Monument in Brampton, Canada
The Supreme Court of Sri Lanka has ordered the Election Commission to immediately proceed with the postponed Local Government Elections.
Ratnapura District Samagi Jana Balawegaya (SJB) MP Thalatha Athukorala has informed Parliament that she decides to resign from her position as Member of Parliament.
United Petroleum (UP) was launched in Sri Lanka today and will commence retail fuel operations in September with 150 dealer owned and operated fuel stations.
The ‘Easter Attack April 2019 – Victim Fund has received a total sum of Rs.231. 8 million as of August 21, 2024 , of which Rs.100 million was paid as compensation by former President Maithripala Sirisena as directed by the Supreme Court, the Office for Reparations said.
Leave Comments