Despite Rupee weakness, Forex has cover!
India’s foreign exchange reserves still provide ample cover of imports and short-term external debt Recently Economic growth jumped to 8.2% YoY in Q2, highest level since early 2016, proves, India is feeling the heat from emerging markets EM turmoil, but is no Turkey or Argentina! Q1 proves, India’s foreign exchange reserves still provide ample cover of imports, says Arjen van Dijkhuizen, Sr. Economist, ABN AMRO. His India Watch said, ‘Growth jumps to 2-year high despite market turmoil! Higher oil prices have driven external deficits up, but external / public debt ratios manageable, FX reserves still comfortable, higher core inflation and rupee weakness have triggered two RBI rate hikes! Parliamentary elections in spring 2019 litmus test for Modi, Further clean-up of banking sector needed! Over the past months, Ems have been hit by a general risk aversion, driven by ongoing Fed rate hikes and general US dollar strength, an escalating trade conflict between the US