Reserve Bank of India released report on India’s foreign exchange reserves

24/06/2023

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Reserve Bank of India released report on India’s foreign exchange reserves

Reserve Bank of India released data showing India’s foreign exchange reserves current position. India’s foreign exchange reserve increased by $2.350 billion and reached the overall level to $596.098 billion.

The RBI stated that forex reserves had dropped by $1.318 billion for the week. Gold reserves have also registered drop by $324 million to $45.049 billion.

Weekly Statistical Supplement:

According to the Weekly Statistical Supplement, Foreign currency assets (FCAs) are grew by $2.578 billion to $527.651 billion.

This value can be expressed in dollar terms the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Weekly statistical supplement is released by the RBI.

Reserve with IMF:

As per the data of RBI, the country’s reserve position with the IMF is gone up by $34 million to $5.149 billion in the reporting week.

The Special Drawing Rights (SDRs) have also gone up by $62 million to $18.249 billion.

The country’s forex reserves had shoot up an all-time high of USD 645 billion in October 2021. But after it the reserves have been down as the central bank deploys the reserves to defend the rupee amid pressures caused majorly by global developments.

Intervention of RBI:

The RBI intervenes in the market through liquidity management from time to time even sale dollars in the market with a view to preventing a steep depreciation in the rupee.

The RBI closely supervises the foreign exchange markets and interferes to maintain market.

RBI controlling excessive volatility in the exchange rate, without reference to any pre-determined target level or band.