India's foreign exchange reserves have again seen a big decline?
India's foreign exchange reserves have decreased by $ 1.781 billion in the week ending february 28. With this, the country's foreign exchange reserves have come down to $ 638.698 billion. This information has been given in the data of the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI). India's foreign exchange reserves are constantly going through a phase of ups and downs. After four consecutive months of decline, it has now reached an 11-month low.
This is why the country's reserves decreased
Although the country's foreign exchange reserves have declined in some weeks, it has also seen an increase in some weeks. It has been declining since reaching an all-time high of $ 704.89 billion in September. Now it has declined by up to 10 percent from the all-time high level. Experts say that this decline in the country's forex reserves is probably due to the intervention of the Reserve bank to stabilize the rupee, which has reached its all-time low against the US dollar.
Forex reserves have fluctuated so much so far
According to the Reserve bank data, India's foreign currency assets (FCA) were $ 543.350 billion, while the gold reserve was $ 73.272 billion. Estimates also indicate that the forex reserve the country currently has will be able to cover 10-11 months of imports. In 2023, India's foreign exchange reserves increased by about $ 58 billion. Whereas in 2022 it decreased by $ 71 billion. So far in 2024, the country's foreign exchange reserves have increased by $ 20 billion. Let us tell you that RBI uses foreign exchange reserves to control volatility in the rupee. When the rupee falls, the RBI strengthens the rupee by selling dollars in the market.
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