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IMF Set to Reclassify India’s FX Management Framework: Report
The IMF is reportedly preparing to reclassify India’s foreign exchange management framework, two years after labeling it a “stabilized arrangement.” The move comes amid higher rupee volatility under RBI Governor Sanjay Malhotra.
The International Monetary Fund is likely to reclassify India’s foreign exchange rate management framework, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The shift comes two years after the global institution categorised India’s FX regime as a “stabilized arrangement” rather than “floating” in December 2023. At the time, the Reserve Bank of India had strongly argued that this assessment was “incorrect” and “inaccurate.” The IMF maintained that classification for the period from December 2022 to November 2024 following its most recent review last year.
News of a possible reclassification arrives amid increased volatility in the rupee under the new RBI Governor, Sanjay Malhotra, who took charge late last year.
(This story has been refiled to correct paragraph 4, replacing “take charge” with “took charge.”)
