Reserve Bank of India (RBI) governor Shaktikanta Das highlighted the rupee’s stability against the US dollar, emphasizing its status as one of the least volatile currencies globally since 2023. The RBI’s interventions in the foreign exchange market, particularly through public sector banks, have aimed to manage fluctuations and prevent sudden depreciation, while cautious steps towards capital account convertibility have been taken to balance liberalization with financial stability. Progress has been made in liberalizing the use of the rupee in international trade, with agreements allowing trade in local currencies and the promotion of rupee vostro accounts, although full capital account convertibility remains a gradual process to ensure economic resilience amidst global uncertainties.
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