If RBI had not purchased gold then the forex reserve figures would have told a different story. In fact, RBI has presented the figures of forex reserves. In which it has been said that there has been a decline in the non-dollar foreign currency kept in India’s reserve. But during this period there has been an increase in gold reserves. Due to which overall there has been an increase in the country’s forex reserves. The special thing is that the increase in Forex reserves has been seen after a decline for two consecutive weeks. Let us also tell you what kind of figures have been presented by RBI regarding forex reserves…
Increase in reserves in Forex
The Reserve Bank of India (RB) said on Friday that India’s foreign exchange reserves increased by US $ 1.033 billion to US $ 687.26 billion during the week ending December 5. In the last reporting week, India’s foreign exchange reserves had declined by US$ 1.877 billion to US$ 686.227 billion. The special thing is that before that there was a decline in forex reserves for two consecutive weeks. This decline was about 6 billion dollars. However, in the current calendar year, the figures in Forex reserves will not be seen as is seen every year.
decline in assets
According to the data released, for the week ended December 5, foreign currency assets, which are a major component of reserves, declined by US$ 151 million to US$ 556.88 billion. Expressed in dollar terms, foreign currency assets include the impact of increases or decreases in the value of non-US currencies held in foreign exchange reserves, such as the euro, pound and yen. In fact, RBI has used foreign currencies extensively to support the rupee. Due to which there has been a decline in it.
Increase in gold reserves
On the other hand, RBI said that during the week the value of gold reserves increased by US $ 1.188 billion to US $ 106.984 billion. India’s apex bank said that Special Drawing Rights (SDR) increased by US $ 93 million to US $ 18.721 billion. India’s reserve position with the IMF declined by US$97 million to US$4.675 billion in the reporting week, according to data from the apex bank.