RBI's Reddy on capital account liberalisation

In the speech 'Remarks on capital account liberalisation and capital controls' given at the Central Bank Governors Symposium convened by the Bank of England on 25 June Dr YV Reddy of the Reserve Bank of India said caution is needed in moving forward with each step in capital account liberalisation, recognising that reversal of any step in liberalisation is very difficult since markets tend to react very negatively to reversals, unless there is already a crisis situation.

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