The Banker , an English-language monthly international magazine , has awarded the Banker of the year to our Governor boy, Harvesh- “His stewardship of the country’s financial sector through one of its most challenging periods in recent history earns him The Banker’s Central Banker of the Year award for Africa.”
If he has been nominated “ Banker of the year’, we ,as well as some economists, analysts, informed bloggers, ...and Moody’s and IMF, should be nominated as the “crétins” of the year, for having criticised him for, among others,
* undermining the independence and credibility of BoM
* raiding the Bank reserves,
* turning the BOM into a free ATM for Govt’s public expenditure
* excessive money printing that have resulted in a spike in inflation and an acceleration in the depreciation of the rupee.
* failing in domestic liquidity sterilization
* un-anchoring inflation expectations and thus leading to more inflation…
* not reforming the BOM law to prohibit central bank’s transfers to the government and quasi-fiscal financing
* not relinquishing the BOM ownership of the MIC
* undermining the credibility and effectiveness of our monetary policy framework
* kaputing” the capital of the Bank
* failing to rein in inflation ( which is above the rate in most emerging markets and sub-Saharan countries) and protect living standards especially for the most vulnerable and
* losing all control
Our Governor boy is so confused that he is even thinking of suspending implementation of the new monetary policy framework, probably out of fear that it might lead to much higher interest rates, as reflected in the higher bid rates of up to 5.35% on 364-Day Treasury Bills and given that excess liquidity and forex balances of banks are coming down sharply.
UNBELIEVABLE , this is the confused chokra that they have awarded Banker of the year...when the BoM’s capital is being impaired and its annual report for year ended June 22 is still not released.
Please note that "The Banker" is owned by FT. The award is probably given in return for agreeing to a FT report on of Mauritius in April 22.
Banker also has an award for Minister of Finance of of the year. Poor Pada, our Governor boy beats him to it.
