Finance Minister Arun Jaitley with RBI Governor Raghuram Rajan at the G20 Finance ministers meet in Turkey. (Press Trust of India)
India today made a strong pitch for global safety nets to tackle volatility in currency movements and markets, a demand that has come against the backdrop of economic shocks triggered by Chinese devaluation of yuan.
Finance Minister Arun Jaitley also sought a well-designed and quickly-triggered safety nets under IMF like strengthening of liquidity arrangements via multilateral swap arrangements between member countries.
"Recent episodes of market volatility and currency movements again pose a lingering question on the need for global safety nets for addressing market concerns.
"I strongly believe that ad hoc, individual, reactionary measures can contain the adverse impact of such events only for a limited period. These cannot provide a sustainable solution which can happen only by global policy coordination," Mr Jaitley said.
He did not name China but was apparently referring to the global shocks China caused with its currency devaluation following its economic slowdown and the impact it had on economies including India.
Mr Jaitley was making an intervention in the session on 'Framework for strong, sustainable and balanced growth' at the G20 meeting of Finance Ministers and Central Bank Governors.