India’s substantial foreign exchange reserves of $700 billion provide a significant safeguard for the economy amid escalating geopolitical tensions, according to a member of India’s Monetary Policy Committee (MPC). Ram Singh, an external member of the MPC at the Reserve Bank of India, expressed in an interview with The Economic Times that these reserves are expected to mitigate the inflationary effects triggered by rising crude oil and fertilizer prices. This financial buffer positions India to better withstand economic disruptions caused by ongoing hostilities in the Middle East.
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India Reserves to Shield Economy in Turmoil, MPC Member Says
India’s $700 billion in foreign exchange reserves gives the economy a crucial cushion against rising geopolitical turmoil, a member of India’s rate-setting panel said, as hostilities in the Middle East continue to deepen.
Ram Singh, an external member of the monetary policy committee with the Reserve Bank of India, said in an interview with The Economic Times newspaper that he expects the country’s foreign-exchange buffer to help blunt the impact of inflation caused by rising crude and fertilizer prices.