India’s foreign exchange reserves saw a fall of $6.052 billion to $593.477 billion as on May 19, 2023, as per Reserve Bank of India data updated on Friday.

Expressed in dollar terms, the foreign currency assets (FCAs) include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

India’s forex kitty had jumped $3.553 billion to $599.529 billion for the week ended May 12.

India’s total FCA saw a dip of $4.654 billion to $524.945 billion.

Gold reserves fell by $1.227 billion to $45.127 billion while SDRs fell by $137 million to $18.276 billion.

India’s reserve position in the IMF saw a dip of $35 million to $5.130 billion.

The Indian rupee rose on Friday and snapped two straight weeks of losses as persistent dollar inflows into equities helped offset the impact from a broadly strong dollar. The rupee ended up 0.2% to 82.5750 versus the U.S. dollar. The currency has recovered from a near three-month low of 82.85 hit earlier in the week. The rupee ended up 0.1% for the week.It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.

India has a strong foreign exchange reserve and the country is in a comfortable position to meet all the requirements even in any worst-case scenario in the next five-six years, Commerce and industry Minister Piyush Goyal said earlier this week.

On forex reserves, he said: “We have strong foreign exchange reserves… In the worst case with whatever difficulty anybody may have, India is comfortable for the next 5 or 6 years, given our forex reserves today, to be able to meet our forex requirements.”

(With agency inputs)

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