Do India has the really adequate foreign reserve to deal with ongoing currency fluctuation?
Rupee hits all-time low, now the question arises "Do India has the really adequate foreign reserve to deal with ongoing currency fluctuation?" India has adequate “firepower” of foreign exchange reserves to deal with the current volatility in the rupee. The volatility is being driven by global factors including the proposed US sanctions on Iran and the mismatch in demand and supply of oil, Subhash Chandra Garg, Economic Affairs Secretary in the Ministry of Financ e said. “We have adequate reserves, there is adequate firepower,” Garg said. The partially convertible rupee fell to a record low of 69.0950 per dollar on Thursday and was trading at 68.52/53 per dollar at 0430 GMT on Friday versus its close of 68.79/80. If needed, the government could raise funds through foreign currency non-repatriable (FCNR) deposits, sovereign bond or other routes through to increase forex reserves, he added. “If we assess at any stage that we need to buttress or refurbish our r...