What global factors influence India’s forex reserve levels? | In Focus podcast

Vivek Kumar speaks to us on how the reserve values have declined due to changes in valuation, and the implications these changes have on the future of the Reserve Bank. 

Updated - October 06, 2022 08:44 pm IST

Published - October 06, 2022 04:05 pm IST

India’s foreign exchange reserves are lower by about $100 bn from a year ago. The rupee has also depreciated; it has seen a decline of more than 7% since the start of the financial year in April. Though the Reserve Bank has dipped into the reserves to help stem volatility in the rupee, that is not the only reason that the observed value of reserves has declined. Changes in valuation, given the dollar strengthening brutally against other currencies too have also contributed.

How does this work? And what implications do all these changes have for the Reserve Bank’s action path going forward?

Guest: Vivek Kumar, economist at macroeconomic research firm QuantEco Research

Host: K. Bharat Kumar

Edited by Sharmada Venkatasubramanian

Listen to more In Focus podcasts:

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.