BS EDIT: Build Buffers, Not the Rupee

By Business StandardPublished On Jun 24, 2026

Oil Pressure Eases

Lower crude prices have reduced pressure on India's external accounts, helping the rupee recover from recent lows

Rebuilding Reserves

The RBI is using improved conditions to replenish forex reserves after heavy market intervention

Handle Inflows Carefully

Fresh inflows through FCNR(B) deposits and ECBs can strengthen reserves and improve external stability

Debt Has a Cost

Much of the incoming capital is debt that will need repayment in foreign currency over time

Global Headwinds Remain

Higher global interest rates and shifting capital flows could create fresh challenges for emerging markets

Strength Through Buffers

With geopolitical risks still present, building reserves is the safest path to resilience