ECO-22 Exchange Rate in India | Forex Market, RBI Role & Economic Impact

This session explains exchange rates and their significance in India’s economy. It introduces the functioning of foreign exchange markets, key determinants influencing exchange rates, and major types of exchange rate systems. The session also examines India’s foreign exchange management framework, including the role of the Reserve Bank of India in managing volatility and intervening in the market. Students will understand how exchange rate movements affect imports, exports, inflation, investment, external payments, and overall economic stability. The module connects theoretical concepts with practical developments, helping learners understand currency movements, forex markets, and their wider implications for India’s trade and economic policy.