India’s forex store dips faster than peers3 min read 25 Oct 2022, 11:52 PM IST
Decline of forex reserves cannot be solely attributed to a central bank’s move to defend the currency
MUMBAI : “You buy an umbrella to use it when it rains," Reserve Bank of India (RBI) governor Shaktikanta Das said earlier this year in connection with using forex reserves to defend the rupee against the dollar. Until the beginning of this year, the country had saved enough for the rainy day, because of strong capital flows in the past. However, those reserves are depleting fast. India lost nearly $85 billion of its forex reserves in the first half of the fiscal year, the second biggest depletion among major emerging market (EM) peers during the period.