India Forex Reserve Data: The continuous rise in Foreign Exchange Reserves has put a brake. After the week ending March 31, 2023, the foreign exchange reserves have come down to $ 578.45 billion. Means there has been a decline of $ 380 million in foreign exchange reserves this week.
The Reserve Bank of India has released data regarding foreign exchange reserves, according to which the foreign exchange reserves have come down to $578.45 billion from the eight-month highest level of $578.78 billion. According to RBI data, foreign currency assets have declined by $ 36 million and have come down to $ 509.69 billion. India’s gold reserves declined by $279 million to reach $45.200 billion. SDRs declined by $27 million, while India’s reserves with the IMF increased by $14 million to $5.16 million.
At the beginning of the year 2022, India’s foreign exchange reserves would have been $ 633 billion, then in October 2021, the country’s foreign exchange reserves had reached an all-time high of US $ 645 billion. The latter is witnessing a fall as the central bank uses reserves to counter a sharp fall in the rupee’s exchange rate amid global developments.
The decrease in foreign exchange reserves in the last months is also because imports have become costlier. So due to the strict monetary policy of RBI and Fed Reserve, the rupee has weakened. Investors are taking out their investments from emerging markets and investing in stable countries like America. So that investors can get huge returns even during strict monetary policy.
RBI periodically intervenes in the market through liquidity management, in which RBI also sells dollars so that the domestic currency can be saved from further weakening. Announcing the monetary policy on Thursday, RBI Governor Shaktikanta Das had said that if foreign exchange reserves increase, it will strengthen macroeconomic stability.
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