New Delhi: India’s foreign exchange reserves declined by USD 5.681 billion to USD 561.267 billion in the week ended February 17, according to the latest data from the Reserve Bank of India. This is their third consecutive week of decline in total foreign exchange reserves.
During the week ended February 3, the reserves declined by USD 8.319 billion to USD 566.948 billion. India’s foreign currency assets, the largest component of foreign exchange reserves, declined by USD 4.515 billion to USD 496.072 billion, according to the latest RBI data. ,ALSO READ: India to become 3rd largest economy in 4-5 years: Piyush Goyal,
Gold reserves decreased by $ 1.045 billion to $ 41.817 billion. Last year at the beginning of 2022, the total foreign exchange reserves stood at around USD 633 billion. Much of the decline can be attributed to the recent RBI intervention and increase in the cost of imported goods. ,Read also: Google lays off 100 robot workers who clean cafeteria,
In October 2021, the country’s foreign exchange reserves reportedly touched an all-time high of around USD 645 billion. Foreign exchange reserves had been falling intermittently for months, largely due to the Reserve Bank of India’s intervention in the market to save rupee depreciation against the rising US dollar.
Typically, the Reserve Bank of India intervenes from time to time in the market through liquidity management, which includes selling dollars, with a view to arresting the steep depreciation in the rupee. The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly conditions in the market by controlling excessive volatility in exchange rates, without reference to any pre-determined target level or band.