The Reserve Bank of India (RBI) governor, Bimal Jalan, has said that the the central bank's statement on Monday did not imply a predetermined target zone-governed exchange rate policy in India.
He made these comments in a speech to the Central Bank of Sri Lanka. He also called for a review of the voting structure of the International Monetary Fund and the World Bank.
Jalan also said the Indian forex market was characterised by a few major players and lumpy public sector demands due to oil imports and servicing of public debt.
"In this situation, the Reserve Bank had been prepared to make sales and purchases of foreign currency to even out lumpy demand and supply in the relatively thin forex market. However, a predetermined target or band around the exchange rate did not govern such intervention,'' he said.