- Thursday, April 18, 2024
By: Shubham Ghosh
India’s foreign exchange reserves are expected to drop further, falling to their lowest level in more than two years by the end of 2022, as the country’s central bank — the Reserve Bank of India (RBI) — continues to defend the rupee from the US dollar’s rise, a Reuters poll found.
In a battle that has so far struggled to staunch the rupee’s fall to a record low, the RBI has drawn down its foreign exchange reserves to $545 billion (£515 billion) from a peak of $642 billion (£607 billion) a year ago. And the process continues.
Those reserves are forecast to plummet another $23 billion (£21.7 billion) to $523 billion (£495 billion) by the end of 2022, according to the median forecast from a September 26-27 Reuters poll covering 16 economists.
If realised, that would be the lowest level in over two years.
