India’s forex reserves increased by $1.727 billion to $573.727 billion in the week ended January 20, according to the latest RBI data. This is the second consecutive week of a rise in the kitty after the $10.417 billion jump to $572 billion during the preceding week.
In October 2021, the country’s forex kitty had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. In October 2022, the reserves had swelled by $14.721 billion during a week.
During the reporting week, the foreign currency assets, a major component of the reserves, increased by $839 million to $506.358 billion, according to the Weekly Statistical Supplement released by the RBI on Friday.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
The gold reserves continued to rise, jumping by $821 million to $43.712 billion, the RBI said. The Special Drawing Rights (SDRs) were up by $68 million to $18.432 billion, the apex bank said. The country’s reserve position with the IMF was down by $1 million to $5.226 billion in the reporting week, the apex bank data showed.
During 2022, the forex reserves saw a decline due to the RBI intervention in the currency market to control the volatility and bolster the rupee. The RBI net sold $33.42 billion till September, Union finance minister Nirmala Sitharaman had said in the Lok Sabha earlier.
The rupee witnessed a decline in 2022 mainly due to the strengthening of the American currency, risk-averse sentiment among investors, and escalation of geopolitical risks due to the conflict in Ukraine.
(With Inputs From PTI)
Read all the Latest Business News here
Comments
0 comment