RBI liberalises forex rules, brings reforms in G-Secs in 2003

Mumbai, Dec. 24: Continuing with its soft and flexible interest rate regime and to provide adequate liquidity, Reserve Bank of India liberalised forex regulations and brought about reforms in the government securities and money markets even as the foreign exchange reserves crossed the much-coveted $100 billion mark by the year end.

Strong economic fundamentals in 2003 saw the rupee appreciate considerably against the US dollar by as much as 5.4 per cent as against 0.55 per cent last year though the central bank had been maintaining that the exchange rate was more market-determined and it did not have any specific target in mind.

The year also saw RBI register a number of firsts to its credit.

Bimal Jalan, whose tenure was extended twice, became the first RBI Governor to be nominated to Rajya Sabha while Y.V. Reddy, who replaced Jalan in September, was the first RBI chief to be given a five-year term with the "takeover scroll" signed by them in the presence of print and electronic media. Again for the first time in RBI’s history K.J. Udeshi became the first woman deputy governor.

Incidentally, both Jalan and Reddy, who was a deputy governor and moved to International Monetary Fund as India’s representative, "vibed well" and were instrumental in steering India away from the Asian crisis in late 90s. (PTI)