The IMF has reclassified India’s exchange-rate system as a “crawl-like arrangement,” replacing last year’s “stabilised” tag.
This change means the rupee is now allowed to move slowly within a small range instead of staying close to a fixed level. The shift comes after the rupee weakened and touched a record low of ₹89.49 per US dollar in November.
The IMF noted that the Reserve Bank of India has been intervening less in the forex market, allowing natural currency movements.
The Fund said this flexibility can help India handle global shocks better and still expects strong economic growth ahead.