Source: economictimes.indiatimes | Image Courtesy: aqusagtechnologi

“RBI Governor Elected Vice-chairman of Bank for International Settlements” Raghuram Rajan, the Governor of the Reserve Bank of India, was recently elected as the Vice-chairman of the Bank for International Settlements (BIS).

He is the first Indian to hold that office. “Rajan joined the BIS Board of Directors in December 2013. Jens Weidmann, Chairman of the BIS Board, welcomed Dr. Rajan in his new role and thanked him for his continued service to the Bank,” the RBI said in a press release.

The BIS is an international organization which “fosters international monetary and financial cooperation and serves as a bank for central banks”. The BIS is based in Basel, Switzerland, and meets six times a year. Mr Rajan’s new role as Vice-chairman of BIS is for a tenure of three years.

He became the Governor of RBI in 2013 for a three-year term. Economic analysts say that Mr Rajan’s new accomplishment will boost his chances of an extension as RBI Governor after his term ends in 2016. Mr Rajan has been a stern critic of the monetary practices of Western central banks in the past.

While calling for more coordination between central banks around the world, he has also condemned other central banks for not raising interest rates and following unconventional practices like quantitative easing for a long period of time. Given Mr Rajan’s economic acumen and accuracy in predictions like the 2008 economic crisis, this new accomplishment is a matter of pride for all of us.

The Logical Indian community congratulates Mr Rajan and wishes him the very best on his new endeavor.