The governor was very clear in this matter, and the stance hasn't changed. The Reserve Bank's stated position is that they do not target any particular level. They just act to reduce volatility on either side. All of this is just active management by the Reserve Bank. I do not see what prompted IMF to change its stance” said Vikas Goel, Managing Director and CEO at PNB Gilts Ltd.

“The IMF is saying that the intervention is more than that, it's just a matter of degree. At different points in time, the Reserve Bank's definition of what is volatile changes. When there is a great degree of uncertainty globally, then they would prefer less volatility. On the other hand, if there is stability globally, then they might tolerate much higher volatility. Reserve Bank's routine foreign exchange rate management policy, it is flexible and it is not a static policy,” he added.