India’s forex reserves grow for third successive week
India’s foreign currency assets rose by US$ 3.0 billion to US$ 487.28 billion.
Parul December 3, 2022
MORE IN News
RBI tweaks rules to cut risk banks face in exposure to capital markets
Tech layoffs: Over 80,000 tech employees lost jobs globally in first four months this year
Apple logs strong double-digit growth in India, to produce more in country: Tim Cook
Decline in battery costs boosting green energy projects: ICRA
India, New Zealand to strengthen links in pharma, agriculture sectors
India’s foreign exchange reserves during the week that ended on November 25 rose by USD 2.89 billion to USD 550.14 billion, the Reserve Bank of India data showed on Friday evening.
This is the third consecutive week of rising reserves. During the week that ended on November 18, the country’s forex reserves were at US$ 547.25 billion, data showed.
According to RBI’s latest data, India’s foreign currency assets, which are the biggest component of the forex reserves, rose by US$ 3.0 billion to US$ 487.28 billion.
However, gold reserves during the week declined by US$ 73 million to US$ 39.93 billion. Barring the past three weeks, the forex reserves have been falling for months now because of RBI’s intervention in the market to defend the depreciating rupee against a surging US dollar.
Also Read: SMBs need to prioritise data protection—and MSPs can help
Also, rising costs of imported items also necessitated the higher requirement of reserves for trade settlement. Typically, the RBI intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
Overall, India’s forex reserves had declined sharply ever since Russia invaded Ukraine in late February when imports of energy and other commodities got costlier globally.