In recent weeks, India witnessed a fluctuation in its foreign exchange reserves, declining by $14.2 billion in five weeks leading to Oct. 6, reaching a five-month low of $583.53 billion by Oct. 20. This decline was briefly interrupted by a rise of $1.16 billion in the week ending Oct. 13. Amid these shifts, the Reserve Bank of India (RBI) has actively intervened in the currency markets. Notably, RBI Governor Shaktikanta Das emphasized that the central bank’s primary goal is to mitigate excessive rupee volatility rather than targeting a specific exchange rate. Concurrently, Das underscored the need for global entities to reassess their practice of creating ‘watch lists,’ reflecting on their broader implications for monetary policies and market perceptions.