India’s foreign exchange reserves halted a three-week decline and reached $602.16 billion as of August 11, according to the central bank’s data on Friday.
India’s foreign exchange reserves fall: The reserves increased by $700 million compared to the previous week, following a cumulative decline of $7.6 billion over the past three weeks.
Changes in foreign currency assets, measured in dollars, account for fluctuations in other currencies held in the Reserve Bank of India’s (RBI) reserves.
Foreign exchange reserves encompass India’s Reserve Tranche position within the International Monetary Fund.
Additionally, the central bank intervenes in the spot and forwards markets to mitigate significant fluctuations in the rupee.
To avert a potential record-low depreciation of the rupee, the RBI reportedly engaged in dollar sales through public sector banks this week, as indicated by traders cited in a Reuters report.
Furthermore, Throughout the period corresponding to the forex reserves data, the rupee exhibited a trading range between 82.6725 and 82.8525 against the dollar.
However, Closing the week at 83.1025, the rupee experienced a 0.2% decline.
FOREIGN EXCHANGE RESERVES (in million U.S. dollars) ——————————————————— Aug 11 Aug 4 2023 2023 ——————————————————— Foreign currency assets 534,399 533,400 Gold 44,340 44,680 SDRs 18,324 18,274 Reserve Tranche Position 5,098 5,099 ———————————————————- Total 602,161 601,453