India’s foreign exchange regime is facing criticism from the International Monetary Fund (IMF) over its reclassification from a ‘floating’ exchange rate regime to a ‘stable’ one. The Reserve Bank of India (RBI) disagrees with the classification, arguing that it is incorrect. However, the IMF has stated that the RBI has followed a stable exchange rate by restricting volatility through interventions in the currency market. This move raises questions about the potential impact on future actions by the RBI and the overall stability of India’s exchange rate policy….