EMs risk breaking out of the hegemony of dominant currencies: RBI Governor

Reserve Bank of India (RBI) governor Shaktikanta Das on Friday cautioned that global spillovers of lose monetary policy measures, in the absence of a global financial safety net could be unintentionally forcing emerging markets economies (EME) to “break out and challenge the hegemony of the dominant reserve currencies.”

Das was speaking at the IMF’s “Governor Talks” programme at the International Monetary Fund-World Bank Spring Meetings. According to Governor Das, managing the spillovers is a “formidable challenge” for EMEs.

“We live in a world of mobile capital flows where consequences of their arrivals, sudden stops and reversals are to be borne nationally,” Das