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India has the option to liquidate some of its foreign exchange reserves to stabilise the rupee if need be, said Sanjiv Sanyal, member of the economic advisory council to the Prime Minister, in an interaction with members of the Bharat Chamber of Commerce. India has foreign exchange reserves of $600 billion. “The forex reserve may be allowed to burn. We have the capacity to do it,” he said. It is the Reserve Bank of India’s prerogative to decide to what extent the forex could be depleted, Sanyal said.
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