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India Has $700 Billion in Cash—So Why Is the Rupee Still Sitting at ₹95+?
India Has $700B — So Why Is the Rupee Still Weak?
AI Summary
India's foreign exchange reserves have reached nearly $700 billion, with recent inflows of over $40 billion. Despite this, the Indian Rupee continues to trade near record lows, around ₹95-96 per US dollar, due to the Reserve Bank of India's (RBI) deliberate policy of buying excess dollars. This policy aims to protect exporters, jobs, and oil security, but at the cost of higher prices for everyday imports, fuel, and foreign travel for ordinary Indians.
India's foreign exchange reserves are approaching $700 billion, with over $40 billion in fresh inflows from special RBI deposit schemes recently. Yet the Rupee continues to trade near record lows, around ₹95-96 per US dollar.
The reason isn't economic weakness — it's deliberate RBI policy. By actively buying up excess dollars instead of letting the Rupee strengthen, the RBI protects Indian exporters and jobs, builds an oil-security buffer against global shocks, and prevents currency volatility that scares off foreign investment.
The trade-off: everyday imports, fuel, and foreign travel become quietly more expensive for ordinary Indians.
Here's the full breakdown of why India's $700 billion reserve isn't making the Rupee stronger — and why that's intentional.
Yashank Rathi is a B.Com (Hons) student at Hansraj College, Delhi University, with a strong passion for finance, markets, business trends, and the startup ecosystem. With growing hands on experience in research, content creation, and SEO driven digital marketing, he brings a fresh and analytical perspective to business journalism. He is the Co-Founder of mangopeoplenews.com, where he works to make complex financial and business topics simple, engaging, and relevant to everyday readers.
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