Foreign Exchange Reserves: Due to global turmoil, there has been a big decline in foreign exchange reserves due to investors withdrawing their investments and the weakness of the rupee against the dollar. In the week ending April 12, 2024, foreign exchange reserves have declined by $ 5.40 billion to $ 643.16 billion.
The Reserve Bank of India, the regulator of the banking sector, has released data regarding foreign exchange reserves. According to RBI, there has been a big decline in foreign exchange reserves in the week ending April 12, 2024 and it has fallen by $ 5.40 billion to $ 643.16 billion. Earlier, in the week ending April 5, 2024, foreign exchange reserves had reached an all-time high of $ 648.562 billion.
According to RBI data, during this period, foreign currency assets have decreased by 6.51 billion dollars to 564.65 billion dollars. However, there has been an increase in the gold reserves of RBI during this period. Gold reserves have increased by $1.241 billion to reach $55.79 billion. Whereas SDR has decreased by 93 million dollars to 18.07 billion dollars and the reserves deposited with the International Monetary Fund have decreased by 35 million dollars to 4.63 billion dollars.
If we look at the reasons for the decline in foreign exchange reserves, the rupee has become extremely weak against the dollar due to the increasing tension between Israel and Iran and the resulting rise in commodity prices including crude oil. There is a possibility that the Central Bank intervened in the currency market to control the rupee, due to which the dollar reserve has decreased. Whenever RBI intervenes to manage the domestic currency or to stop its fall against the dollar, a change in the foreign exchange reserves is seen. In today's trade, the rupee closed at the level of 83.47 per dollar.
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