Central bank continues to build reserves to counter volatility, with India’s reserves at $645.6 billion. Governor Das emphasizes the need to create a buffer for future risks. Governor Das, in his monetary policy statement, has said that the external sector is resilient and the latest external vulnerability is eminently manageable. The country’s forex reserves are at 99.6% of outstanding external debt at end-December 2023.
FCNR(B) scheme has bought India 3-5 years, but $170 billion repayment cliff looms: Uday Kotak
Uday Kotak has described India’s $130-billion-plus FCNR(B) mobilisation as a “strong insurance policy” against global shocks, but warned that repayments including interest could reach $160-170