India Can Deploy $150 Billion to Defend Rupee as Forex Reserves Hold at $690 Billion
Updated
Updated · Bloomberg · May 13
India Can Deploy $150 Billion to Defend Rupee as Forex Reserves Hold at $690 Billion
1 articles · Updated · Bloomberg · May 13
$690 billion in foreign-exchange reserves leaves India with room to spend nearly $150 billion defending the rupee against an Iran-war-driven oil shock, economists said.
That buffer would still keep import cover above the stress levels seen in 2013, when the Federal Reserve's taper plans triggered capital outflows across emerging markets.
The assessment suggests the Reserve Bank of India retains substantial firepower even if higher oil prices intensify pressure on the currency and external accounts.
Is India's costly defense of the rupee masking a deeper, unresolved energy crisis?
With Hormuz blocked, is India's special oil deal with Iran a savvy move or a dangerous geopolitical gamble?