Indian Foreign Exchange Reserves Decreased By $ 5 Billion
Indian foreign exchange reserves decreased by $ 5 billion amid a fall in the rupee: Forex Reserve.
Indian foreign exchange reserves declined by $5 billion to $588.314 billion during the week ended July 1, according to weekly data from the Reserve Bank of India.
Reserves rose by $2.734 billion to $593.323 billion after three consecutive weeks of declines in the previous week.
How much stock has already decreased?
According to RBI data, India’s forex assets, which are the largest component of forex reserves, declined by $4.47 billion to $524.745 billion during the week ended July 1.
In addition, gold reserves declined by $504 million to $40.422 billion, special drawing rights fell by $77 million to $18.133 billion.
While the country’s reserve position with the International Monetary Fund (IMF) Country’s Reserve Position) rose by $44 million to $5.01 billion.
India’s foreign exchange (FX) reserves increased by nearly $3.9 billion to over $600 billion in the week ended May 27.
This relief news came when fuel prices increased significantly in the global market. However, since then there has been a steady decline in foreign exchange reserves.
What are forex reserves?
Foreign currency or foreign exchange reserves are essential assets held by the Reserve Bank of India (RBI) as reserves in foreign currencies, to be used in times of economic crisis.
It is commonly used to support exchange rates and make monetary policy.
In India’s case, the foreign exchange reserves consist of the International Monetary Fund’s quota for dollars, gold, and special drawing rights.
Some central banks keep the British pound, euro, Chinese yuan, or Japanese yen in their reserves in addition to their US dollar reserves.
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