MUMBAI: The Reserve Bank India (RBI) is evaluating the possible impact of the move by China over the weekend to make its currency Renminbi more flexible.

Talking to newsmen here on the sidelines of an event, RBI Deputy Governor Subir Gokarn said " It is early to judge the concrete impact on exchange rate or any other variables, on Chinese announcement. He said RBI as central bank is evaluating the possible impact of China’s move, especially on the rupee exchange rate and trade and capital flows.

"Discussions are going on both internally and between government and RBI. And we will evaluate the situation and try and take the best call we can do, based on both short term and medium term factors," he said.

He said investors need not worry about the immediate volatility in the exchange value of rupee vis-a-vis dollar in the wake of the latest move by China stating that there were hedging tools available. Stating that there need not be any worry on the short term impact he said "volatility is not the issue. The issue is per se whether investors have the means to hedge themselves against it".