FRIDAY: FINANCE HOW INDIA'S FOREIGN EXCHANGE IS MANAGED?  India's foreign exchange (forex) management is governed by the Reserve Bank of India under the Foreign Exchange Management Act (FEMA), 1999. The RBI regulates forex transactions, reserves, and exchange rates to ensure economic stability. Below are the key aspects of India's forex management: 1. Management of Foreign Exchange Reserves The RBI manages India's foreign exchange reserves, which include: Foreign currency assets (FCA): Held in major currencies like USD, EUR, GBP, and JPY. Gold reserves : RBI holds gold as part of its forex reserves. Special Drawing Rights (SDRs) : International reserve assets allocated by the IMF. Reserve Position in the IMF : India’s quota and borrowing rights in the IMF. The reserves help stabilize the rupee, manage inflation, and meet external liabilities. 2. Exchange Rate Management India follows a managed floating exchange rate system, where the market determines the rupee’s value...