IMF to reclassify India's foreign exchange rate management framework: Report

The International Monetary Fund is likely to reclassify India’s foreign exchange rate management regime in the near future, Bloomberg News reported on Tuesday (November 25) citing people familiar with the matter.

The reported shift comes two years after the international body had characterised India’s FX management regime to ”stabilised arrangement” from ”floating” in December 2023.

The Reserve Bank of India strongly believes that such a view is ”incorrect” and ”unjustified”, the report had said at the time. The IMF had retained the tag for the period of December 2022 to November 2024 following its latest review last year.

News of the potential reclassification by the IMF comes as the rupee’s volatility has picked up under new chief Sanjay Malhotra who took charge of the central bank late last year.