scorecardresearchRegulatory tweaks to have limited support to forex flows

Regulatory tweaks to have limited support to forex flows

Updated: 07 Jul 2022, 10:21 AM IST
TL;DR.
  • Dislocation in forwarding rates, falling forex cover, high commodity prices and CAD funding risks mean that the RBI’s intervention strategy cannot be the sole support for INR and will soon face limitations, writes Madhavi Arora.
Further complementary monetary and fiscal corrective measures in the form of trade curbs or regulatory changes are needed to address the looming pain on the BoP, and the external imbalances thereof. REUTERS/Mukesh Gupta

Further complementary monetary and fiscal corrective measures in the form of trade curbs or regulatory changes are needed to address the looming pain on the BoP, and the external imbalances thereof. REUTERS/Mukesh Gupta