India’s forex reserves recorded $600 billion mark

India’s forex reserves recorded $600 billion mark

India’s forex reserves experience the biggest weekly jump in four months.

As per the Reserve Bank of India’s report, India’s forex reserves rose by $12.74 billion to $609.02 billion. Forex reserves had showed an uptick of $1.23 billion previously.

According to the Weekly Statistical Supplement released by the RBI, foreign currency assets (FCAs) soared by $11.19 billion to $540.17 billion. The FCAs contains the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves grew $1.14 billion to $45.20 billion, while SDRs increased by $250 million to $18.500 billion.

Reserve Position in the IMF moved up by $158 million to $5.18 billion.

Intervention of RBI:

The RBI intervenes in the market through liquidity management from time to time.

If rupee weakens, RBI sells dollars to prevent a steep depreciation in the rupee.

The RBI closely examines the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

The central bank’s monthly bulletin showed that in May the RBI purchased $7.37 billion in the spot foreign exchange market.

The data also showed that the RBI had not sold any dollars in the reported month.

The Indian rupee depreciated by more than 1% against the dollar in May due to purchasing of a net of $7.70 billion in the spot market by the central bank.

Download Online Mock Test Mobile APP

• Join Official Telegram Channel
• Join Official Whatsapp Group

Recommended PDF’s for 2023:

• Computer Capsule 2022 : Download PDF
• Quantitative Aptitude Topic-Wise Online Test Series 2022
• Banking Awareness (Theory+MCQ’s) Complete PDF : Download Now
• Get FREE Study Materials & PDFs for IBPS , RBI, SBI, LIC AAO , LIC Assistant, NIACL & Other Exams Over the mail and Whatsapp