Overview
- RBI data show foreign-exchange reserves fell by $11.68 billion to $716.81 billion in the week ended March 6 as the central bank sold dollars to steady the currency.
- The rupee weakened to a record low near 92.5 per dollar this week, pressured by higher crude prices and foreign outflows linked to the West Asia conflict.
- Former RBI deputy governor Michael Patra proposes a reserve target based on covering one-year external debt of about $300–$350 billion plus a cushion equal to 60–65% of foreign portfolio investments, or roughly $600–$650 billion.
- Patra argues the $1 trillion stockpile could be built over roughly three years, drawing on India’s historical pace of reserve expansion.
- The government plans a ₹1‑trillion economic stabilisation fund, while a parliamentary finance panel warns that oil shocks and market volatility could jeopardize growth and fiscal goals.