Duvvuri Subbarao: Financial stability mandate of central banks issues in the international and Indian context Welcome address by Dr Duvvuri Subbarao, Governor of the Reserve Bank of India, at the SAARCFINANCE Governors’ Symposium, Kumarakom, Kerala, 10 June 2011. *  *  *  1. Financial stability has come centre stage in the post crisis scenario.
Also, capital inflows have been growing rapidly and highly overvalued exchange rate would hurt these trends. More fundamentally, without a currency redenomination/realignment, a significant appreciation of the Naira/dollar exchange rate would lead to fiscal crisis given that much of the revenue is dollar denominated, and such appreciation would also significantly deplete our external reserves.