Snapshots: Forex Reserves in India

Snapshots: Forex Reserves in India

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March 27, 2023

As per the data regarding the forex reserves in India released on Friday by the Reserve Bank of India (RBI):

• India's Foreign Exchange Reserves increased by $12.8 billion to $572.8 billion as of March 17, 2023.

• India's Foreign Exchange Reserves fell to $560 billion as of the week ending March 10, their lowest level since early December, according to data from the previous week. India's Foreign Exchange Reserves experienced a decrease of $2.397 billion, bringing the total to a three-month low of $560 billion as of March 10, 2023.

• As of the week that ended March 3, India's Foreign Exchange Reserves had risen for the first time to USD 562.40 billion, after falling for five consecutive weeks.

• India's foreign currency assets (FCA), which make up the majority of the Forex Reserves, increased this week by $10.49 billion to $505.34 billion.

• SDRs and India's reserve position in the IMF both saw increases of $98 million and $29 million, respectively, while India's gold Reserves increased by $2.19 billion to $44.11 billion.

• The total value of the Forex Reserves as of the beginning of the year 2022 was approximately $633 billion.

• The rupee currently trades for more than 82 US dollars.

• The rupee degraded by Rs O.24 closing at Rs.82.44 vis-à-vis the dollar on Friday egged on by the dollar strength coupled with humongous selling in the homegrown value market.

Interventon by the RBI - To stop the rupee's rate of exchange against the dollar from spiraling out of control, the Central Bank intervenes in the spot and forwards markets. The Reserves have fluctuated as a result of valuation gains or losses, according to the RBI. In most cases, the RBI occasionally intervenes in the market through liquidity management, including the sale of dollars, in an effort to avert significant rupee depreciation.

Source: The Economic Times