This week, foreign exchange reserves declined by $ 11.17 billion to reach $ 606.475 billion. This is the biggest drop in a week. On Friday, Governor Das had said that India’s dollar reserve is in a strong position.
Announcing the first monetary policy for the financial year 2022-23 on Friday, Reserve Bank Governor Shaktikanta Das (Shaktikanta Das) told three main things. He said that inflation is increasing and the growth rate is decreasing. The good thing is that India’s foreign exchange reserves ,Foreign Exchange Reserves) is at a comfortable level. However, this week there has been a record fall in foreign exchange reserves. The pressure on the Indian currency increased due to global political events. As a result, the country’s foreign exchange reserves fell by $ 11.17 billion this week. With this fall, the Reserve Bank of India’s reserves now reached $ 606.475 billion. Due to this, the foreign exchange reserves had increased by $ 2 billion in the previous week and it was $ 617.64 billion.
Foreign currency assets held in foreign exchange reserves, expressed in dollars, include the effects of appreciation or depreciation in non-US currencies such as the euro, pound and yen. Usually, RBI intervenes in the market to reduce volatility in the money market by selling dollars from its foreign exchange reserves. Russia’s attack on Ukraine has created problems in the currency markets.
Gold reserves fall by $51 million
Earlier, in the week ended March 11, there was the highest decrease of $ 9.6 billion. The value of gold reserves also declined by $ 507 million to $ 42.734 billion in the week under review. In the reporting week, special drawing rights (SDRs) with the International Monetary Fund (IMF) rose by $58 million to $18.879 billion. The currency reserves of the country kept in the IMF also increased by $ 4 million to $ 5.136 billion.
Rupee rises due to maintaining repo rate
The Reserve Bank of India has decided not to change the policy interest rates for the 11th time in a row. Repo rate has been kept at 4 per cent and reverse repo rate at 3.35 per cent. After this, the rupee rose on the last day of the week and it closed at 75.93 with a gain of 10 paise. On Thursday, the rupee had declined by 19 paise to close at Rs 76.03 per dollar. On a weekly basis, the rupee has depreciated by 19 paise against the dollar.
Big fall in foreign exchange reserves
Former RBI governor Bimal Jalan had also said recently that the Reserve Bank of India has sufficient foreign exchange reserves. In such a situation, he can handle any kind of global situation better. Let us tell you that between April 1, 2021 and December 2021, the Reserve Bank’s foreign exchange reserves increased by $ 63.5 billion. During this period, the country’s current account deficit was 1.2 percent of GDP.
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