Forex Reserves: Foreign exchange reserves decreased amidst the depreciating rupee, at the lowest level of two years

forex
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India’s forex reserves fell to a two-year low of $528.367 billion for the week ended October 14, down $4.5 billion from the previous week.

According to RBI data, the country’s foreign exchange reserves stood at USD 532.868 billion in the previous week.

According to the central bank, India’s foreign currency assets, which are the largest component of foreign exchange reserves, have declined by USD 2.828 billion to USD 468.668 billion during the past week.

During this period, the value of gold reserves declined by $ 1.5 billion to $37.453 billion. RBI data shows that the value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund declined by USD 149 million to USD 17.433 billion during the week under review.

Explain that due to possible intervention of RBI in the market to protect the fall in rupee against the continuously rising US dollar, the forex reserves have been declining for the last few months.

Expansion

India’s forex reserves fell to a two-year low of $528.367 billion for the week ended October 14, down $4.5 billion from the previous week.

According to RBI data, the country’s foreign exchange reserves stood at USD 532.868 billion in the previous week.

According to the central bank, India’s foreign currency assets, which are the largest component of foreign exchange reserves, have declined by USD 2.828 billion to USD 468.668 billion during the past week.

During this period, the value of gold reserves declined by $ 1.5 billion to $37.453 billion. RBI data shows that the value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund declined by USD 149 million to USD 17.433 billion during the week under review.

Explain that due to possible intervention of RBI in the market to protect the fall in rupee against the continuously rising US dollar, the forex reserves have been declining for the last few months.