According to the data released by the Reserve Bank, for the week ended March 11, foreign exchange reserves declined by $ 9.646 billion to $ 622.275 billion.
Biggest fall in forex reserves in 2 years
Image Credit source: PTI
on Friday reserve Bank of India ,RBIAccording to the data released by the country’s foreign exchange reserves during the week ended March 11 (forex reserve) has decreased by about $10 billion. This is the biggest decline recorded in the country’s foreign exchange reserves in the last two years. According to a report in the Economic Times, this fall in foreign exchange reserves against the dollar (Rs.Dollar vs Rupee) This has been seen due to the steps taken by the Reserve Bank to stop the sharp fall in During the same week, there was a sharp fall in the rupee, to stop which the Reserve Bank had to increase the flow of dollars into the system, which saw a decrease of $ 11 billion in foreign currency assets and its effect on the entire foreign exchange reserves.
Why there was a sharp fall in foreign exchange reserves
This fall in reserves has been the biggest decline in the last two years. Earlier on March 20, 2020, the country’s foreign exchange reserves had decreased by $ 11.9 billion. In the week ended March 11, there was a sharp fall in the rupee against the dollar. The rupee had crossed the 77 level against the dollar on March 7, a report published in ET quoting market experts said that the Reserve Bank had intervened to prevent further fall in the rupee and sold the dollar in the market. Of. According to estimates, the Reserve Bank had introduced dollars in the market during the week at the rate of about $ 1 billion per day. This prevented the rupee from falling further. However, in this process there was a reduction in foreign currency assets. At present, the country’s foreign exchange reserves are not far from their highest level, due to which this fall will not have much effect. India’s current stock is enough to cover the import bill of more than one year.
Where did the country’s foreign exchange reserves reach
According to the data released by the Reserve Bank, in the week ended March 11, $ 9.646 billion came down to $ 622.275 billion. Earlier, in the week ended March 4, foreign exchange reserves had increased by $ 394 million to $ 631.92 billion. Earlier, in the week ended September 3, 2021, foreign exchange reserves had reached a record level of $ 642.453 billion. It forms an important part of currency reserves. According to the data, in the week ended February 11, FCA had declined by $ 11.108 billion to $ 554.359 billion. However, due to the increase in gold reserves, the impact of the fall in FCA was somewhat lessened. Gold reserves increased by $ 1.522 billion to $ 43.842 billion during the week.