RBI intervened to correct Rupee Depreciation by selling Dollars to stabilize Rupee.

RBI intervened to correct Rupee Depreciation by selling Dollars to stabilize Rupee.

In this process it wasted a good amount Forex. Despite this effort , INR depreciation still going on.

Import cover fell from 14.4months to 10.3 months.

This is worse than the fall during global crisis!

The fall in the Reserves have averaged $5 billion in the three recent weeks.

This has pulled down the import cover of the foreign exchange reserves from a high of 17.4 months in end March 2021 to 13.1 months in end December 2021.

Also the recent estimates of the RBI show that the import cover of the foreign exchange reserves has come down to nine months by September 2022.