There has been a decline in India’s forex reserves. Image Credit source: File photo
About 13 months ago, the country’s foreign exchange reserves had set a record of life time high. Since then this record is waiting to be broken. Many times it seemed that this record would be broken, but then a big decline was seen in it. Now there is a continuous decline in foreign exchange reserves for the last three weeks. In these three weeks, more than Rs 1.35 lakh crore has disappeared from the foreign exchange reserves. If we look at the figures, there has been a decline in both foreign currency assets and gold reserves. If this continues, the country’s gold reserve will once again go below $100 billion. Let us also tell you what kind of figures have been seen from RBI.
decline in foreign exchange reserves
According to the information given by the Reserve Bank of India, the country’s foreign exchange reserves decreased by $ 2.69 billion to $ 687.03 billion in the week ending November 7. There has been a declining trend in foreign exchange reserves for the last few weeks. Due to this, in the last week the foreign exchange reserves had decreased by 5.62 billion dollars to 689.73 billion dollars. However, this is the third consecutive week when there has been a decline in foreign exchange reserves.
Under which Rs 1.35 lakh crore i.e. 15.25 billion dollars has been reduced from the country’s forex reserve. Whereas in the week ending September 27, the country’s foreign exchange reserves had reached $704.89 billion, which is a record. From the week ending September 12 to the week ending October 17, there were three such occasions when it seemed that the country’s foreign exchange reserves would cross the record of life time high, but it could not happen. But then there was a decline in foreign exchange reserves.
Due to which forex reserves decreased
- According to data released on Friday, foreign currency assets, a major component of foreign exchange reserves, declined by $ 2.45 billion to $ 562.14 billion in the week ending November 7.
- RBI said that during the week the value of gold reserves decreased by $ 195 million to $ 101.53 billion.
- On the other hand, Special Drawing Rights i.e. SDR also declined by $51 million to $18.59 billion.
- According to the data, India’s reserves with the International Monetary Fund (IMF) remained unchanged at $ 4.77 billion in the week under review.
Spent to handle the money
According to experts, RBI has used Forex reserves to manage the rupee. If experts are to be believed, the rupee has been falling for the last few days. RBI has intervened to keep it on track. On the other hand, RBI has used Forex reserves to stop the fall in rupee due to increase in demand for dollars from foreign currency traders. Apart from this, to reduce the dependence on the dollar, India is now reducing the purchase of dollars and has increased its focus on gold.