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RBI Rupee Defense Plan: Due to the continuously strengthening US Dollar (USD), the condition of Global Currencies around the world is getting worse. Despite being in a comparatively better condition than the rest, the Indian currency is in heavy losses. During the last few years, there has been a tremendous decline in the value of rupee. The situation is such that even all the measures of the Reserve Bank are proving insufficient to save the rupee. India spent $212.57 billion during the last financial year, while purchases on the other hand stood at $187.05 billion. In this way, during the last financial year, RBI intervened a total of $ 399.62 billion in the foreign exchange market to handle the upheavals of the rupee. If the weekly and other holidays are removed, then the average daily intervention of RBI during the last financial year comes to $ 1.6 billion, which is about Rs 13,260 crore.
Despite the intervention of the Reserve Bank on such a large scale, during the last financial year, the value of the rupee declined significantly. Presently, the rupee is at a rate of about 83 against the dollar. During the last financial year, in the month of July, the rupee fell against the dollar and crossed 80 for the first time. The rupee depreciated by 7.8 per cent against the dollar during the financial year 2022-23, which ended on March 31. INR)’ This is the worst phase going on. The value of Rupee (Indian Rupee Value) has decreased very rapidly during the last few times. Looking at the Reserve Bank’s foreign exchange reserves, it reached a record level of $ 642.450 billion in early September 2021. During the last financial year, there was a decline of about $ 60 billion in foreign exchange reserves. However, now it has again improved a bit and has reached close to $600 billion at the end of April. It is used to manage the movement of rupee. When the value of the rupee is falling rapidly, the Reserve Bank withdraws dollars from its reserves and throws them into the market. On the other hand, when the rate of rupee improves, then the Central Bank starts focusing on strengthening the reserves. Last year, the Reserve Bank had said that in the event of a sharp fall in the rupee, it can inject foreign exchange of about $ 100 billion into the market.
The rupee can fall even further
market Experts say that the rupee seems to be stable at 83 against the dollar at present, but historical trends and the current situation cannot deny that it may cross 85 against the dollar in the coming days. The rupee has depreciated by more than 25 per cent in the last 7-8 years.
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