Monitoring the impact of coronavirus on financial markets: RBI

MUMBAI: The Reserve Bank said on Tuesday that it is closely monitoring the global and domestic situation with respect to the impact of the deadly coronavirus and is ready to take the necessary measures to ensure the orderly functioning of the financial markets.

Globally, financial markets have experienced considerable volatility, with the spread of the coronavirus, triggering feelings of risk and flights to shelter, the Reserve Bank of India (RBI) said in a statement.

The indirect effects on Indian financial markets have been largely contained. The rising hopes of coordinated political action to mitigate the broader consequences for economic activity has increased market sentiment today.

The Reserve Bank of India is monitoring national and international developments closely and continuously and is ready to take appropriate measures to ensure the orderly operation of financial markets, maintain market confidence and preserve financial stability, he said.

The outbreak of coronavirus and its subsequent spread to geographies throughout the world has negatively affected financial markets.

Meanwhile, the government issued a travel notice, suspending all regular electronic visas/visas granted on March 3 or earlier to citizens of Italy, Iran, South Korea and Japan who have not yet entered India, a day later of two new cases of coronavirus. It was reported in the country.