India’s Forex Reserve has seen a decline. Image Credit Source: File Photo
India’s foreign exchange reserves have witnessed a continuous decline for weeks. According to the data, in these two weeks, there has been an injury of $ 2.73 billion i.e. 27 thousand crores of rupees. However, India’s foreign exchange reserves are still over $ 700 billion. Which is equal to the import of about 11 months. By the way, more than a year has passed, when foreign exchange reserves set a record of life time. Since then, India’s foreign wealth came close to the record level, but could not cross it. Let us also tell you at which level the country’s currency reserves have come.
Falling of foreign exchange reserves
According to the data from the Reserve Bank of India released on Friday, India’s foreign exchange reserves declined by $ 2.334 billion to $ 700.236 billion during the week ended on 26 September. In the last reporting week, the reserves had come down by $ 39.6 million to $ 702.57 billion. By the way, India’s foreign exchange reserves have reduced 2.73 billion dolls in two consecutive weeks. According to experts, the impact of the increasing steady decline in the rupee is also being seen. RBI uses foreign currency to handle the rupee. At the same time, if the rupee will be weak against the dollar, then India will have to spend more for imports in foreign markets.
Currency assets also decline
According to data released by RBI, in the week ended September 26, a major component of foreign exchange reserves, the foreign currency assets declined by $ 4.393 billion to $ 581.757 billion. The dollar, expressed in the dollar, contains the impact of the price increase or depreciation of non-American units like euros, pounds and yen kept in foreign currency reserves. The central bank said that during the week the gold reserves increased by $ 2.238 billion to $ 95.017 billion. The apex bank said that special drawing rights (SDR) fell by $ 9 million to $ 18.789 billion. According to the data, India’s reserved status in the IMF also fell by US $ 89 million to US $ 4.673 billion in the week under review.