More left in the locker

The drop in FX reserves to the lowest level in almost two years has raised concerns in some quarters that the RBI’s policy of FX intervention to slow the depreciation of the rupee is not sustainable. We think this is overblown. After all, over the past several years but in particular since the start of the pandemic, the RBI has built itself a buffer of reserves significantly larger that most measures of adequacy suggests it needs. EM Drop-In (4^th August, 10:00 ET/15:00 BST): Join our monthly online session on the big issues in emerging markets. In this 20-minute briefing, the team will be answering your questions about debt risks amid global tightening, the latest on the inflation outlook and much more. Register now.