Foreign exchange reserves were the lowest in three months, these reasons were responsible

Forex Reserve Latest Update: The period of decline in India’s foreign exchange reserves has started again. According to official data, India’s foreign exchange reserves decreased by $2.397 billion during the week ended March 10. In this way, foreign exchange reserves have now come down to the lowest level in three months.

only one week relief

There has been a continuous decline in foreign exchange reserves during the recent past. After five consecutive weeks of decline, there was relief news in the week ending March 03. During that week there was a rise in foreign exchange reserves. However, this respite proved to be short-lived, as the forex reserves fell again the following week to the lowest in three months.

Now this is the forex reserve

According to the official data of the Reserve Bank (RBI Data), the foreign exchange reserves came down to $ 560 billion in the week ended March 10. Earlier, after the week ending March 03, this reserve had increased to $ 562.40 billion.

According to the data, during the week under review, India’s foreign exchange assets decreased by about $ 2.2 billion to $ 494.86 billion. Foreign currency assets ie FCA are shown in dollar terms. In this figure, the effect of fluctuations in the prices of currencies other than dollar like euro, pound, yen etc. is included.

There was also a decline in

India’s gold reserves and SDR holding also decreased during the week of March 10. During this, the gold reserve ie gold reserve decreased by $ 110 million to $ 41.92 billion. At the same time, there was a decrease of $ 53 million in SDR and it remained equal to $ 18.12 billion. Similarly, the reserve kept with the IMF decreased by $ 11 million to $ 5.1 billion.

This was the all time high level

India’s foreign exchange reserves reached its highest level in October 2021. Then it had crossed 645 billion dollars. Since then there has been a decrease in foreign exchange reserves. Due to various adverse factors, the value of the Indian currency rupee has decreased against the dollar. Due to this, the foreign exchange reserves have also declined, as the Reserve Bank spends its foreign exchange reserves from time to time to handle the rupee.

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