Page 24 - Policy Economic Report - November 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

from the previous “stabilized” classification. A crawling peg involves small, gradual adjustments
to reflect inflation gaps between a country and its trading partner, according to an IMF
publication. The IMF last changed the classification in 2023, after the rupee moved within a very
narrow range.

• While interventions have generally declined in recent months and the rupee/dollar exchange rate
has exhibited increased two-way movements, the Reserve Bank of India has continued to use FX
intervention regularly.

• Allowing greater exchange rate flexibility would help absorb external shocks and reduce the need
for costly reserve accumulation, the IMF said.

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