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India FX Buffer Is Still Robust to Defend Rupee, Economists Say
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India FX Buffer Is Still Robust to Defend Rupee, Economists Say

Bloomberg.com·Subhadip Sircar·6 months ago
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India’s foreign-exchange reserves remain strong enough to defend its currency against the Iran-war driven oil shock, with buffers well above stress levels seen during the taper tantrum, according to economists.

The Reserve Bank of India can deploy nearly $150 billion from its forex pile of $690 billion before import cover falls to 2013 levels, when the Federal Reserve’s plan to scale back bond purchases triggered outflows from emerging markets, calculations based on economists’ estimates show.