Forex Reserve: Forex reserves fell to $550 billion; Know the reason behind the decline.
This week has also seen a decrease due to the fall in Foreign Currency Assets (FCA) in the country’s foreign exchange reserves.
Due to this, the country’s foreign exchange reserves have fallen to $ 550 billion by 9 September 2022.
In foreign exchange reserves, almost all components except the reserves with the IMF and gold have declined.
According to the data released by the Reserve Bank of India on Friday, the country’s foreign exchange reserves fell by $ 2.234 billion to $ 550.871 billion last week.
Earlier on September 2, it was $ 553.105 billion in the data released.
Cause of decline.
Foreign currency assets are considered to be the largest component of India’s foreign exchange reserves. In the latest figures, it has fallen by $ 2.519 billion to $ 489.58 billion.
Forex Reserve: It was $492 billion in the previous week.
Experts are assuming the strong position of the dollar as the main reason for the fall in foreign currency assets, due to which the RBI has to sell a large number of dollars to handle the fall in the rupee.
Increase in gold and IMF reserves.
The country’s gold reserves have increased by $ 340 million to $38.644 billion. In the previous week, the value of gold reserves had decreased by $ 1.339 billion.
At the same time, the country’s IMF reserve has increased by $ 8 million to $ 4.910 billion.
Since the beginning of this year, the US dollar has been continuously strengthening against other currencies of the world.
The dollar index, which is considered to be a measure of the strength of the dollar, has also reached a 20-year high.
Due to this, there has been a big fall in the value of currencies of developed and developing countries of the world.