India’s forex reserves decrease:
India’s forex reserves reduced by $2.335 Bn to $590.702 Bn for the week ended on September 22 as per the latest data by the Reserve Bank of India disclosed on Friday.
Previously, forex reserves had reduced by $867 million for the week ended on September 15. As per the statistical data released by the RBI, forex assets decreased by $2.55 Bn to $523.40 Bn.
In October 2021, India’s forex kitty had increased to its all-time high of USD 645 Bn. The reserves have been declining as the RBI uses the kitty to defend the rupee amid the pressures resulting from major by global developments.
RBI Policy
Typically, RBI intervenes in the market from time to time through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
Reserve Bank of India – Weekly Statistical Supplement (rbi.org.in)
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