He indicated that the ongoing crisis in the US banking system stems from such imbalances. Delivering the annual KP Hormis Memorial Lecture in Kochi, the Governor said that the domestic financial sector is stable and the bad phase of inflation is behind.

No need to fear

On the impact on the ability to repay external debt due to the ongoing volatility in exchange rates, Das said that there is no need to fear, as our external debt is manageable. The strength of the dollar is not a problem for us. Significantly, due to the increase in the value of the dollar, the challenges have increased in front of countries with high external debt risk.

The RBI governor gave information.

Most of the governor’s speech focused on India’s G20 presidency. He said the group of the world’s 20 largest economies (G20) should make coordinated efforts to help countries with high external debt exposure due to rising dollar value. He also said that the G20 should provide climate change financing to the most affected countries.

Information given about the banking crisis

On the US banking crisis, he said that this shows the importance of strong regulations, which emphasize sustainable growth instead of creating excessive assets or liabilities. Last week, two mid-sized banks in the US – Silicon Valley Bank and First Republic Bank were closed.

Das said that the current US banking crisis clearly shows the risks of private cryptocurrencies to the financial system . He has been an open critic of private digital currencies.

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