The IMF has reclassified India’s exchange rate regime to a “crawl-like arrangement,” indicating increased flexibility after previously labeling it “stabilised.” This shift follows a review and suggests the Reserve Bank of India, under Governor Sanjay Malhotra, is tolerating more rupee volatility. The move aims to help India absorb external shocks and reduce reserve accumulation.The IMF has reclassified India’s exchange rate regime to a “crawl-like arrangement,” indicating increased flexibility after previously labeling it “stabilised.” This shift follows a review and suggests the Reserve Bank of India, under Governor Sanjay Malhotra, is tolerating more rupee volatility. The move aims to help India absorb external shocks and reduce reserve accumulation.
