Pakistan’s gold price has continued to rise following a further increase in the global market. And India’s Foreign Exchange Reserves Decreased By $30 Million.
According to RBI Data, India’s foreign exchange reserves fell by $30 million but stayed essentially steady at $594.88 billion. As of August 25, India’s foreign exchange reserves were $594.86 billion, according to information released on Friday, September 1 by the RBI.
According to figures from the central bank, the weekly decline in forex reserves was only $30 million, compared to a $7.27 billion decline in the week ending August 18. The consequences of the appreciation or depreciation of other currencies held in RBI reserves are reflected in changes to foreign currency assets represented in dollar terms.
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The value of non-US currencies like the euro, pound, and yen held in foreign exchange reserves is reflected in the foreign currency assets, which are expressed in dollar terms. The RBI said that gold reserves were up $530 million to $44.354 billion. According to the central bank, there were $ 11 million fewer Special Drawing Rights (SDRs), totaling $ 18.194 billion.
The consequences of the appreciation or depreciation of other currencies held in the RBI reserves are reflected in changes to foreign currency assets represented in dollar terms. Notably, the nation’s foreign exchange reserves hit an all-time high of $645 billion in October 2021. According to news agency PTI, the reserves suffered as the central bank used the funds to protect the rupee against pressures mostly brought on by global events since last year.
India’s Reserve Tranche holdings at the International Monetary Fund (IMF) are included in the foreign exchange reserves. In order to stop the rupee from making wild swings, the RBI also intervenes in the spot and futures markets. In the reporting week, the nation’s reserve position with the IMF decreased by $ 12 million to $ 5.061 billion. according to RBI data
On Friday, the rupee strengthened by 8 paise to settle at 82.62 against the US dollar as a result of foreign exchange inflows and positive macroeconomic statistics. Positive equities market optimism also helped the local currency, albeit advances were constrained by a stronger dollar and a rise in crude oil prices. SDRs declined by $11 million to $18.19 billion while gold reserves increased by $530 million to $44.35 billion. The IMF’s reserve position dropped by $12 million to $5.06 billion.
It should be mentioned that the nation’s foreign exchange reserves hit an all-time high of USD 645 billion in October 2021. The reserves have been dropping as the central bank uses its funds to defend the rupee against pressures mostly brought on by international events. In order to stop a sharp depreciation of the rupee, the RBI often occasionally intervenes in the market through liquidity management, including by selling dollars.
India’s foreign reserves fell by $30 million to $594.86 billion
The RBI said on Friday that India’s FX reserves fell by $30 million to $594.858 billion for the week ending August 25. The entire reserves had declined by $7.273 billion to $594.888 billion in the previous reporting week. It should be mentioned that the country’s foreign exchange reserves hit an all-time high of $645 billion in October 2021. The reserves were depleted as the central bank utilized the funds to safeguard the rupee against pressures brought on mostly by global developments since last year. According to the RBI’s Weekly Statistical Supplement for the week ending August 25, foreign currency assets, a significant component of reserves, dropped by 4538 million to $527.249 billion.
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