RBI’s Khan favours balanced policy orientation to EME capital inflows


Harun Rashid Khan, a deputy governor of the Reserve Bank of India, on Wednesday said a policy approach that combines subtle interventions in foreign exchange markets and a flexible currency will protect emerging market economies from the increase in capital flows.

At the Istanbul Finance Summit, Khan said that while resource-constrained emerging economies benefited from capital flows, the financial crisis highlighted the risks from such flows in a closely interconnected world.

He said sudden

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