India’s foreign exchange reserves: India’s foreign exchange reserves to increase cumulatively by $58 billion in 2023
New Delhi: India’s foreign exchange reserves increased by $4.471 billion to $620.441 billion Week ending December 222023, at the highest level in 21 months, latest data released by reserve Bank of India Has shown. In calendar year 2023, the RBI added about $58 billion to its foreign exchange reserves.
Last week, India’s foreign currency assets (FCA), the largest component of foreign exchange reserves, increased by $4.698 billion to $549.747 billion, the central bank’s weekly statistical data showed.
In 2022, India’s foreign exchange reserves are expected to decline cumulatively by $71 billion.
However, gold reserves declined by $102 million during the week to $474.74 billion.
Foreign exchange reserves, or foreign exchange reserves (FX reserves), are assets held by a country’s central bank or monetary authority.
It is usually held in reserve currencies, usually the US dollar and, to a lesser extent, the euro, Japanese yen and pound sterling.
Earlier, in the last week ending December 15, India’s foreign exchange reserves had increased by $ 9.112 billion to $ 615.971 billion.
The country’s foreign exchange reserves reached an all-time high of nearly $645 billion in October 2021. Most of the decline since then, although modest on a cumulative basis, can be attributed to the increase in the cost of imported goods in 2022.
Moreover, the relative decline in foreign exchange reserves was largely due to RBI intervention to hedge against periodic depreciations in the market. Rupee Against the rising US dollar.
Generally, RBI intervenes in the market from time to time through liquidity management including sale of dollars to prevent a sharp fall in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by controlling excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
Last week, India’s foreign currency assets (FCA), the largest component of foreign exchange reserves, increased by $4.698 billion to $549.747 billion, the central bank’s weekly statistical data showed.
In 2022, India’s foreign exchange reserves are expected to decline cumulatively by $71 billion.
However, gold reserves declined by $102 million during the week to $474.74 billion.
Foreign exchange reserves, or foreign exchange reserves (FX reserves), are assets held by a country’s central bank or monetary authority.
It is usually held in reserve currencies, usually the US dollar and, to a lesser extent, the euro, Japanese yen and pound sterling.
Earlier, in the last week ending December 15, India’s foreign exchange reserves had increased by $ 9.112 billion to $ 615.971 billion.
The country’s foreign exchange reserves reached an all-time high of nearly $645 billion in October 2021. Most of the decline since then, although modest on a cumulative basis, can be attributed to the increase in the cost of imported goods in 2022.
Moreover, the relative decline in foreign exchange reserves was largely due to RBI intervention to hedge against periodic depreciations in the market. Rupee Against the rising US dollar.
Generally, RBI intervenes in the market from time to time through liquidity management including sale of dollars to prevent a sharp fall in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by controlling excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
