Foreign exchange reserves fell by $ 1.7 billion, gold reserves increased

At present, the foreign exchange reserves of the country remain above Rs 47.5 lakh crore in rupee value. It has seen an increase of Rs 5 lakh crore in the last one year.

fall in forex reserves

Image Credit source: PTI

There has been a decline in the foreign exchange reserves of the country. reserve Bank (RBIAccording to the data released by the foreign exchange reserves ,Forex Reserve) has increased by $ 1.763 billion to $ 630 billion. Due to this, there was an increase in foreign exchange reserves in the week ending last week i.e. 4th February. According to the data of the Reserve Bank, there has been a sharp decline in foreign currency assets during the week. At the same time, there has been an increase in SDR with the IMF. Also gold reserves during the week (gold reserve) has also seen an increase. At present, the country’s foreign exchange reserves remain above Rs 47.5 lakh crore in rupees. In the last one year, it has seen an increase of Rs 5 lakh crore.

Where did the country’s foreign exchange reserves reach

The country’s foreign exchange reserves declined by $ 1.763 billion to $ 630.19 billion in the week ended February 11. At the same time, in the previous week ended February 4, reserves had increased by $ 2.198 billion to $ 631.953 billion. During the week, the fall in foreign currency assets (FCA) led to a fall in reserves, which account for the largest share of the entire reserves. FCA declined by $2.764 billion to $565.565 billion for the week ended February 11. Expressed in dollars, the FCA also takes into account the effects of fluctuations in non-US currencies such as the euro, pound and yen held in foreign exchange reserves. Data shows that gold reserves increased by $ 95 million to $ 40.235 billion in the week. RBI said the special drawing rights (SDR) with the International Monetary Fund (IMF) increased by $65 million to $19.173 billion. The country’s reserve position with the IMF has dropped by $16 million to $5.217 billion in the week.

The country’s reserve recorded a steady increase

According to the data, there has been a steady increase in the reserve of the country. In the week ended September 3, 2021, reserves had reached an all-time high of $ 642.453 billion. High level of foreign exchange reserves is a very positive sign for any economy, the situation of default of neighboring Sri Lanka was made because its foreign exchange reserves were nearing exhaustion. Same is the situation of Pakistan also. To avoid this, both the countries are also ready to take loans at high rates. At the same time, the Indian economy has got additional security due to reserves. Also, in the midst of the Corona epidemic, for this reason the country was also successful in winning the trust of the rating agencies.

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