The country’s foreign exchange reserves decreased for the third consecutive week, gold reserve increased

The country’s foreign exchange reserves decreased for the third consecutive week

of country foreign exchange reserves ,Foreign Exchange Reserves) has seen a decline for the third consecutive week. reserve Bank (RBIAccording to the data released by ), there has been a decrease of $ 2 billion in the country’s foreign exchange reserves in the week ended March 25. This decline in reserves has been recorded when the country’s gold reserve (Gold Reserve) Increased. According to the Reserve Bank, the decrease in foreign exchange reserves during the week was seen due to the fall in foreign currency assets. During the week, there was a fall in 3 out of 4 segments of forex reserves. In which foreign currency assets, IMF SDRs and reserve positions with IMF are included.

Where did the country’s foreign exchange reserves reach

According to the data released by the Reserve Bank, the country’s foreign exchange reserves fell by $ 2.03 billion to $ 617.648 billion in the week ended March 25. Earlier, reserves had decreased by $2.59 billion in the week ended March 18 and $9.64 billion in the week ended March 11. That is, during three weeks, there has been a decrease of more than $ 14 billion in the country’s foreign exchange reserves. The fall in foreign exchange reserves during the week is due to the decrease in foreign currency assets. During this period, FCA fell by $ 3.2 billion to $ 550.45 billion. On the other hand, due to the rise in gold prices, the country’s gold reserves have increased by $ 1.23 billion during the week. With the increase, the gold reserve is currently at $ 43.24 billion.

Why it is important for the country to have a strong forex reserve

Even after three consecutive weeks of decline, the country’s forex reserve is in a strong position and it is able to meet the country’s import bill for almost a year. Strong foreign exchange reserves keep economies safe from any major economic crisis amid the ongoing economic uncertainty around the world. There has been a steady increase in India’s foreign exchange reserves. Reserves have increased by $ 38.36 billion in the last one year. In the week ended March 11, there was a decrease in reserves due to the steps taken by the Reserve Bank to stop the fall in the rupee. That is, due to the high reserves, the Reserve Bank was successful in helping the rupee when needed. At present, countries like Sri Lanka and Pakistan are battling with depleting foreign exchange reserves and are being forced to take loans at high rates to pay the import bills.

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