India forex reserves rise for seventh week to reach fresh peak

Apr14,2024



New Delhi: India's foreign exchange reserves It rose for the seventh consecutive week to an all-time high 648.562 billion US dollars According to the latest data released by the Reserve Bank of India, in the week ending April 5 (reserve Bank of India,
Foreign exchange reserves stood at US$645.583 billion before the week ending April 5.
from india foreign currency assets According to the central bank's weekly statistical data, the largest component of foreign exchange reserves (FCA) increased by US$549 million to US$571.166 billion.
Gold reserves increased by US$2.398 billion to US$54.558 billion during the week.
In calendar year 2023, the RBI added about US$58 billion to its foreign exchange reserves. In 2022, India's foreign exchange reserves are expected to decline cumulatively by US$71 billion.
Foreign exchange reserves have increased by about US$28 billion on a cumulative basis so far in 2024.
Foreign exchange reserves, or foreign exchange reserves (FX reserves), are assets held by a country's central bank or monetary authority.
It is usually held in reserve currencies, usually the US dollar and, to a lesser extent, the euro, Japanese yen and pound sterling.
The country's foreign exchange reserves last reached its all-time high in October 2021. Most of the decline after that can be attributed to the increase in the cost of imported goods in 2022.
Furthermore, the relative decline in foreign exchange reserves could be linked to RBI interventions in the market from time to time to hedge the disproportionate depreciation in the rupee against the rising US dollar.
Generally, RBI intervenes in the market from time to time through liquidity management including sale of dollars to prevent a sharp fall in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by controlling excessive volatility in the exchange rate, without reference to any pre-determined target level or band.



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