Foreign Exchange Reserves: There is a continuous decline in the foreign exchange reserves of the country. In the week ended April 22, the currency reserves have decreased by $ 3.271 billion to $ 600.423 billion. Reserve Bank of India has released the figures and told about this.
Continuous decline in foreign exchange reserves
According to the data released by the Reserve Bank of India (RBI), during the week ended April 15, it had decreased by $ 311 million and it had come down to $ 603.694 billion.
FCA also declined
The decline in foreign exchange reserves was due to depletion of foreign currency assets (FCA), which constitute a significant part of the total reserves. According to the data, FCA declined by $ 2.835 billion to $ 533.933 billion in the week ended April 22.
Gold reserve also declined
Let us tell you that in foreign currency assets expressed in dollars, foreign currency assets also include the movement of non-US currency such as euro, pound and yen. According to the data, the country’s gold reserve declined by $ 377 million to $ 42.768 billion during the week under review.
SDR also slipped
RBI said that special drawing rights (SDR) deposits with the International Monetary Fund (IMF) declined by $ 33 million to $18662 billion this week. According to the data, the currency reserves of the country kept in the IMF have come down by $ 26 million to $ 5.060 billion.
$ 14.272 billion slipped since March
This has been said in an article by the Reserve Bank of India (RBI). RBI has been emphasizing on foreign exchange reserves since 2019 and it reached a record $ 642.453 billion on September 3, 2021. This is more than double as compared to December 2018. However, in March 2022, foreign exchange reserves decreased by $ 14.272 billion. The reason for this is the increase in interest rates in developed countries and capital withdrawal from the domestic market due to the Russo-Ukraine war.