News India Live, Digital Desk: Foreign exchange: India’s foreign exchange reserves (Forex) declined by US $ 2.06 billion to US $ 686.06 billion in the week ended 2 May, which occurred after the leading lead for eighth consecutive week, as the official data released by the Reserve Bank of India (RBI) shows. India’s foreign exchange reserves rose $ 1.983 billion to US $ 688.129 billion in the week ended April 25.
Top bank data shows that foreign exchange assets rose US $ 581.177 billion to US $ 581.177 billion in the week under review. FCA is the largest component of foreign exchange reserves that reflect the evaluation effect of non-American currencies such as euros, pounds and yen placed in the reserves. These are written in dollars.
Foreign exchange reserves began to decline after the US $ 704.89 billion reached an all -time high in September, but then it improved. The decline in the store was probably due to the intervention of the RBI, which was aimed at preventing a sharp devaluation of the rupee. The Indian rupee is now at its all -time low or closer to the US dollar.
An estimate of the apex bank suggests that India’s foreign exchange reserves are sufficient to cover an estimated import of about 10–12 months. In 2023, India added about 58 billion US dollars to its foreign exchange reserves, while in 2022 it had a cumulative decline of US $ 71 billion.
In 2024, the reserves increased slightly by US $ 20 billion. Foreign exchange reserves, or FX stores, are property laid by a country’s central bank or monetary authority, mainly in reserved currencies such as US dollars, which are small in euros, Japanese yen and pound sterling.
The RBI intervenes by managing liquidity, including selling dollars, to prevent a huge fall in the rupee. The central bank purchases dollars when the rupee is strengthened strategically and sells when weakens.
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