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Exchange Rate

Exchange Rate (External Sector).

Syllabus: UPSC Pre GS1: Economic & Social Development; Mains GS3

In the news

GS2 · IR

India-UK JETCO: first review of the trade deal (CETA) since it came into force

The 16th India-UK Joint Economic and Trade Committee (JETCO) met in New Delhi on 12 October 2026. It was the first JETCO since CETA talks began in January 2022. Both sides reviewed early trade under CETA, agreed to share data every year on its use, and fixed the 17th JETCO for the UK in 2027.

UPSC angle: Prelims: JETCO, CETA, eCoO 2.0, tariff-rate quota. · Mains GS-II/GS-III: India-UK relations; FTAs and exports.

12 Oct 2026

GS3 · Economy (external sector)

RBI tightens forex derivative rules and opens a dollar window for oil companies

On 10 October 2026 RBI issued two circulars to curb speculation in the rupee: cancelled INR forex derivatives cannot be rebooked, the no-proof hedging limit falls from USD 100 million to USD 5 million, and banks must keep a 20% cash reserve on large dollar-buying hedges. RBI also opened a dollar window for three public sector oil companies.

UPSC angle: Prelims: FERR, USD 5 mn, OMC window, FEMA. · Mains GS-III: exchange rate management, external sector.

10 Oct 2026