India’s foreign exchange reserves
According to data released by the Reserve Bank of India (RBI), by September 19, India’s foreign exchange reserves have come down by $ 396 million to $ 702.57 billion. The stock had increased by $ 4.69 billion in the week ended last week i.e. 12 September and reached $ 702.9 billion. At the same time, in the end of September 2024, it was recorded at $ 704.885 billion so far.
Foreign currency property decline the most
The largest part in the total reserve is that of Foreign Currency Assets FCA. FCA declined by $ 864 million to $ 586.15 billion in the week ended on 19 September. Apart from the dollar, FCA also includes the effect of currencies like euro, pounds and yen. Therefore, other global currency fluctuations have a direct impact on India’s Forex Reserve.
Gold and SDR increased
Although there was a decrease in foreign exchange property, gold reserves saw an increase of $ 360 million. With this, the total gold reserve reached $ 92.78 billion. Similarly, special drawing rights SDR also increased and it was recorded at $ 105 million to $ 18.88 billion.
RBI’s interference to maintain stability
The RBI periodically interfere with the Forex market. Under this, the bank takes steps like selling or buying dollars so that a sudden rapid fluctuations in the rupee can be controlled. Officials say that the purpose of these interpretation is not to maintain the rupee on a particular level or band, but to maintain stability and balance in the market.
India’s foreign exchange reserves continuously depend on global conditions, the strength of the dollar and the move of other currencies. While FCA has seen a decline, the increase in gold and SDR has given partial support to the store. Overall, RBI’s active interference and balanced policy will play an important role in keeping the Indian market stable even further.