Modi Urges Indians to Conserve Dollars Amid Global Uncertainty

Prime Minister Narendra Modi has recently made an appeal that is being talked about all over the country. On Sunday, during an event in Hyderabad, he said, "Don't buy gold for a year, avoid foreign travel and work from home as much as possible." He has a simple reason to say this - save dollars, keep India's foreign exchange reserves safe. His appeal comes amid the war in Iran and the resulting rise in crude oil prices and pressure on the rupee. Now the question is what is the connection between avoiding gold purchases and maintaining the country's foreign exchange position? Let's understand the whole math. According to data collected by Trading Economics, India's foreign exchange reserves are about 690.69 billion. RBI data shows that in February, the country's foreign exchange reserves rose to about $728 billion, but in April, due to increasing global uncertainty, it again fell to about $691 billion. The IMF has projected that India's CAD deficit will reach $2 billion by 2026.