IMF Reclassifies India's FX Regime To 'Crawl-Like Arrangement'

The International Monetary Fund (IMF) has reclassified India’s exchange-rate regime, two years after the Washington-based lender suggested the country’s central bank was intervening too heavily in the currency market. 

The IMF labeled the country’s de facto currency regime as “crawl-like arrangement”, marking a change from the previous “stabilized” classification, the agency said in its annual country report for India released Wednesday.

A crawling peg involves small, gradual adjustments to a currency to reflect inflation gaps between a country and its trading partner, according to an IMF publication.