India’s forex reserve surges by $5.08 billion to $595 billion: RBI data
Earlier, there was a decrease of $462 million in forex reserves, bringing the total to $590.32 billion for the week ending November 10
Forex reserves of India have witnessed a surge by $5.077 billion, reaching a total of $595.397 billion, according to the latest data released on Friday by the Reserve Bank of India (RBI).
Earlier, there was a decrease of $462 million in forex reserves, bringing the total to $590.32 billion for the week ending November 10.
The reserves suffered a decline as the central bank utilized its funds to safeguard the rupee against pressures primarily stemming from global developments over the past year.
When measured in dollars, the foreign currency assets reflect the impact of the appreciation or depreciation of non-US currencies, such as the euro, pound, and yen, held in the foreign exchange reserves.
As per the Weekly Statistical Supplement published by the RBI, there was a $4.39 billion increase in Foreign Currency Assets (FCAs), bringing the total to $526.39 billion.
When expressed in dollars, the FCAs account for the impact of the appreciation or depreciation of non-US currencies such as the euro, pound, and yen held in the foreign exchange reserves.
Gold reserves increased by $527 million, reaching $46.04 billion, and Special Drawing Rights (SDRs) saw a rise of $120 million, reaching $18.13 billion.
The IMF's reserve position has been increased by $42 million, reaching a total of $4.83 billion.
In October 2021, the nation's foreign exchange reserves achieved a historic peak of USD 645 billion.
However, these reserves have been diminishing as the central bank utilizes them to safeguard the rupee in response to pressures primarily stemming from global developments.
Generally, the Reserve Bank of India (RBI) intervenes periodically in the market by managing liquidity, which may involve selling dollars. The aim is to avoid a significant depreciation of the rupee.
The RBI carefully observes the foreign exchange markets and steps in primarily to uphold organized market conditions, curbing excessive fluctuations in the exchange rate.
This intervention is not guided by any predetermined target level or range.
