Indian Foreign Exchange Reserves Continue To Decline
Indian foreign exchange reserves continue to decline, likely to reach a 2-year low.
The trend of decline in the country’s foreign exchange reserves continues. India’s forex reserves declined by $ 8.134 billion to $ 537.518 billion in the trading week that ended September 23.
RBI gave information about this on Friday. Due to this, the forex reserve was reduced to about $ 546 billion ($ 545.54 billion) in the last trading week.
Explain that RBI is continuously intervening to save the falling value of the rupee and is selling dollars.
Recently, in a survey by a news agency, it was feared that India’s forex reserve could go down to a 2-year low.
Not only the dollar, but India’s gold reserve has also come down by $ 300 million to $ 37.886 billion.
Indian foreign exchange reserves continue to decline: Fall in FCA.
According to the weekly statistical data released by the RBI, there has been a decrease in foreign exchange reserves in the week ended 23 September due to a fall in the Foreign Currency Asset (FCA).
The FCA is, in fact, a major part of the overall reserve. FCAs include the effect of rising or falling in non-US currencies such as the euro, pound, and yen held in foreign exchange reserves.
The central bank said that during the week under review, FCAs declined by $7.688 billion to $477.212 billion.
Forex reserve will go up to $ 500 billion.
16 economists were included in the survey conducted by Reuters. Those who said that India’s forex reserve could fall to $523 billion by December.
A similar situation was created during the economic crisis of 2008. Then India’s foreign exchange reserves had fallen by 20 percent.
India is currently spending its forex reserves faster than it was in the 2013 taper trumpet period.
No effect of interference.
Even though RBI is constantly intervening to save the creditworthiness of money, in front of the strengthening dollar, at the moment no trick seems to be working.
The rupee had reached its lowest level of 81.93 against the dollar on Wednesday. However, after that there was a slight increase in it and yesterday it improved and closed at 81.36 level.
However, experts believe that the rupee will weaken further due to the strengthening of the dollar and signs of recession. The same is true of other currencies including Euro, Yen, and Yuan.
