The decline in the country’s foreign exchange reserves stopped, the reserve increased by $ 2.7 billion, crossed the $593 billion mark

The trend of decline in the country’s foreign exchange reserves stopped

This increase in foreign exchange reserves has been seen after three consecutive weeks of decline. In these 3 weeks, the country’s foreign exchange reserves had decreased by $ 10 billion.

The country’s foreign exchange reserves increased by $ 2.734 billion to $ 593.323 billion in the week ended June 24. The reason for this increase in reserves is the increase in foreign currency assets i.e. foreign currency assets. reserve Bank of India ,RBIEarlier last week, foreign exchange reserves had declined by $ 5.87 billion to $ 590.588 billion, according to the data of . The reason for the increase in foreign exchange reserves in the week ended June 24 is due to increase in foreign currency assets, which is a significant part of the total currency reserves. Apart from this, the foreign exchange reserves have also increased due to the increase in gold reserves. Foreign exchange reserves for three consecutive weeks before June 24 (forex reserve) and reserves fell below the level of $ 600 billion.

Why did the reserve increase

According to the data, foreign currency assets (FCA) increased by $ 2.334 billion to $ 529.216 billion in the week. Due to which there was an increase in the total reserve. Foreign currency assets held in foreign exchange reserves, expressed in dollars, include the effects of appreciation or depreciation in non-US currencies such as the euro, pound and yen. According to the data, the value of gold reserves also increased by $342 million to $40.926 billion during the week. In the week under review, special drawing rights (SDRs) with the International Monetary Fund (IMF) rose by $55 million to $1821 billion. At the same time, the currency reserves of the country kept in the IMF also increased by $ 3 million to $ 4.97 billion.

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Reserve increased after 3 weeks of decline

This increase in foreign exchange reserves has been seen after three consecutive weeks of decline. In these 3 weeks, the country’s foreign exchange reserves had decreased by $ 10 billion. According to the data released by the Reserve Bank, India’s foreign exchange reserves decreased by $ 5.87 billion in the week ended June 17 and $ 4.5 billion in the week ended June 10. According to the Reserve Bank’s article in May, the reserve of about $ 600 billion is equal to the country’s 10-month import bill. There are constant fluctuations in the reserve. Before the week ending May 20, there was a decline in reserves for 9 consecutive weeks. And it had reached the level of $ 593 billion. In the week ended September 3, 2021, the foreign exchange reserves had reached an all-time high of $ 642.5 billion. The country’s reserves are under pressure from weak rupee and high crude oil prices.