Foreign Exchange Reserves: There was a steady decline in India’s foreign exchange reserves. According to the data of the Reserve Bank of India (RBI), India’s foreign exchange reserves have increased unexpectedly for the first time in the 10th week. India’s foreign exchange reserves increased by $ 204 million to $ 532.868 billion in the week ended October 7. Let us tell you that due to the increase in the value of safe gold reserves, there has been an increase in the foreign exchange reserves. In its last week, foreign exchange reserves had come down by $ 4.854 billion to $ 532.664 billion. It is known that in October 2021 last year, the country’s foreign exchange reserves were at an all-time high of $ 645 billion.
RBI’s efforts improved
RBI has made several efforts to lift the local currency rupee from its record low. Foreign exchange reserves fell sharply from $ 607 billion at the end of March. Which stood at $109.58 billion from $ 642.45 billion on September 3 last year. Forex reserves for the week ended 30 September fell to their lowest level since July 2020 at $532.66 billion. Also, in the same week, foreign exchange assets have come down by $ 1.31 billion to $ 471.50 billion. Gold reserves have increased by $ 1.35 billion to $ 38.96 billion. The same reached a low of 82.43 against the greenback on October 14, 2022 and today closed at 82.32.
what was the reason for the decline
One of the main reasons behind the fall in foreign exchange reserves was the inflow of foreign currency assets (FCA), which stood at $ 472.81 billion in the week ended September 30. In its last week, FCA was $ 477.21 billion. Apart from this, gold assets declined to $ 37.61 billion for the week ended September 30, from $ 37.89 billion in the previous week.
what RBI said
Reserve Bank of India (RBI) Governor Shaktikanta Das said last month that RBI Bank’s foreign exchange reserves remained strong despite uncertainty in the market. He said that the RBI is intervening in the foreign exchange market on the basis of continuous assessment of the prevailing conditions. Das said that during this financial year 2022-23, which started from April 1, there was a decline of about 67 percent in reserves. The Governor said that during the first quarter of 2022-23, there has been an increase of US $ 4.6 billion in foreign exchange reserves on a balance of payments (BOP) basis.
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