Decoded: How the rupee trade settlement is tied to India’s trade deficit and forex reserves - Business Insider India

As a net-importing country, India’s forex reserves have come under pressure due to the surge in the value of the US dollar.To help ease some of this pressure,

India is a trade deficit country, meaning it imports more than it exports. This forces the country to maintain large forex reserves, since world trade still occurs in US dollars. The ongoing pressure… [+4815 chars]

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