India’s foreign exchange reserves fall by $ 5.2 billion, RBI intervenes to protect the rupee. india business news
Mumbai: India’s foreign currency The latest data released by the Reserve Bank of India showed reserves declined by $5.240 billion to $617.230 billion in the week ended February 9, down from a one-month high hit the previous week.
During the week ended February 9, India’s foreign currency assets (FCA), the largest component of foreign exchange reservesAccording to the central bank’s weekly statistical data, it decreased by $4.807 billion to $546.524 billion.
Gold reserves declined by $350 million during the week to $47.739 billion.
in calendar year 2023 reserve Bank of India added about $58 billion to its foreign exchange reserves. In 2022, India’s foreign exchange reserves are expected to decline cumulatively by $71 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.
The country’s foreign exchange reserves reached an all-time high of nearly $645 billion in October 2021. Many declineHowever, modest on a cumulative basis, the increase in the cost of imported goods from then to 2022 can be attributed to this.
Furthermore, the relative decline in foreign exchange reserves could be linked to RBI interventions in the market from time to time to hedge the disproportionate depreciation in the 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.
During the week ended February 9, India’s foreign currency assets (FCA), the largest component of foreign exchange reservesAccording to the central bank’s weekly statistical data, it decreased by $4.807 billion to $546.524 billion.
Gold reserves declined by $350 million during the week to $47.739 billion.
in calendar year 2023 reserve Bank of India added about $58 billion to its foreign exchange reserves. In 2022, India’s foreign exchange reserves are expected to decline cumulatively by $71 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.
The country’s foreign exchange reserves reached an all-time high of nearly $645 billion in October 2021. Many declineHowever, modest on a cumulative basis, the increase in the cost of imported goods from then to 2022 can be attributed to this.
Furthermore, the relative decline in foreign exchange reserves could be linked to RBI interventions in the market from time to time to hedge the disproportionate depreciation in the 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.
