India Forex Reserve: According to the data released by RBI, India’s foreign exchange reserves fell by $ 2.23 billion to $ 550.87 billion in the week on 9 September 2022. In the previous week, during the week ending September 2, the country’s foreign exchange reserves stood at $ 553.10 billion.
Foreign exchange reserves are falling continuously
There was a decline in reserves every single week except for the increase in the last week of July. Foreign exchange reserves have continued to decline since Russia’s attack on Ukraine in late February. Foreign exchange reserves stood at $607 billion at the end of March. This decline in the country’s foreign exchange reserves has occurred due to the decline in foreign currency assets as it is the largest part of the reserve. Foreign currency assets fell by $2.52 billion to $489.60 billion in the reporting week.
Experts believe that the trend of decline in foreign exchange reserves may continue. In the coming days, it can come down to $ 510 billion. Especially the current account deficit has come down to 4 percent, there may be a further decline in foreign exchange reserves.
Deutsche Bank has said in a recently released report that there is a possibility of a fall in India’s foreign exchange reserves this year. In particular, the RBI’s efforts to contain the rupee from falling and the increase in the current account deficit may lead to further decline in forex reserves. Earlier on Friday, the rupee has lost at 79.74 against the dollar. The rupee saw a strength of 3 paise.