India’s substantial foreign exchange reserves, amounting to $700 billion, offer a significant safeguard for the economy amidst increasing geopolitical challenges, according to a member of India’s rate-setting panel. Ram Singh, an external member of the monetary policy committee at the Reserve Bank of India, stated in an interview with The Economic Times that these reserves are expected to mitigate the inflationary effects driven by rising crude oil and fertilizer prices. This financial buffer positions India to better withstand economic pressures stemming from global uncertainties.
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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.