# ExplainSpeaking: How is India’s exchange rate related to its current account deficit, forex reserves, and balance of payment? | Explained News - The Indian Express

> An explainer describes India's balance of payments as a ledger of transactions with the rest of the world, linking the current account, forex reserves and the rupee exchange rate. It cites RBI data showing a current account deficit of 1.2% of GDP for April to December 2021.

- Date: 2022-04-04 · published 2022-04-04T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/42146-explainspeaking-how-is-india-s-exchange-rate-related-to-its-current-account
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

A widening current account deficit increases pressure on the rupee, which raises the dollar cost of imported feed ingredients for Indian buyers.

## Sources

- indianexpress.com: https://indianexpress.com/article/explained/india-exchange-rate-current-account-deficit-forex-balance-of-payment-7851688/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.