Foreign Exchange Reserves: There has been the biggest weekly decline in forex reserves. India’s forex reserves declined by $11.173 billion to $606.475 billion as the currency came under pressure due to global geopolitical developments. The Reserve Bank of India (RBI) has given information about this in the figures.
There was also a fall on 25 March
Earlier, in the week ended March 25, foreign exchange reserves were down by $ 2.03 billion to $ 617.648 billion. According to the data released by the RBI, the fall in foreign exchange reserves came due to the depletion of foreign currency assets (FCA), which constitute a significant part of the total reserves. According to the data, FCA declined by $10.727 billion to $539.727 billion.
Know how the condition of international currency?
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.
a decrease of $ 9.6 billion
Let us tell you that RBI intervenes in the market to reduce the 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. Earlier, in the week ended March 11, there was a maximum decrease of $ 9.6 billion.
Decline in gold reserve
In the week under review, the value of gold reserves also decreased by $ 507 million to $ 42.734 billion. The Special Drawing Rights (SDR) with the International Monetary Fund (IMF) increased by $58 million to $18.879 billion. The country’s currency reserves kept in the IMF also increased by $ 4 million to $ 5.136 billion.