Explainer: Foreign Exchange Reserves. Also what is pegging of Currency or Fixed Exchange rate.

Let's say an exporter has received payments for its exported product in dollars. The exporter will go to his local bank and exchange those dollars for rupees. The local bank will go to the RBI (which is India‚Äôs Central Bank) and exchange those dollars for rupees. The Central Bank will print an equivalent amount of … Continue reading Explainer: Foreign Exchange Reserves. Also what is pegging of Currency or Fixed Exchange rate.