Foreign exchange reserves below $700 billion, reserves decreased by $11 billion due to FPI selling

Foreign Exchange Reserves: There has been a major decline in India’s foreign exchange reserves due to selling by Foreign Portfolio Investors. In the week ending October 11, 2024, foreign exchange reserves have declined by $ 10.74 billion to below $ 700 billion to $ 690 billion. In its first week, the forex reserve was 701.176 billion dollars. On October 4, Forex reserves had reached an all-time high of $704.88 billion.

The Reserve Bank of India (RBI) has released the forex reserve data for October 18, 2024. According to this data, foreign exchange reserves have decreased by 10.74 billion to 690.43 billion dollars. Foreign currency assets have also decreased by $10.54 billion and have come down to $602.210 billion. RBI’s gold reserves have decreased by $98 million to $65.65 billion. SDR has decreased by 86 million dollars to 18.33 billion dollars and the reserves deposited in the International Monetary Fund have decreased by 20 million dollars to 4.33 billion dollars.

The reason for this decline in foreign exchange reserves is the selling of foreign investors in the Indian Stock Market. Foreign portfolio investors have withdrawn their money from the Indian market and invested it in China, due to which there has been a dent in the foreign exchange reserves. According to the data, foreign portfolio investors have sold more than Rs 66,300 crore in the first 15 days of October. Despite this selling by foreign investors, Bank of America has said in its report that by March 2026, India’s foreign exchange reserves will increase to $ 746 billion, which will help RBI to stop the weakness in the rupee.

It is the effect of FPI selling that the rupee remains weak against the dollar and is still trading at 84.07, below the level of 84 rupees against one dollar.

read this also

Direct Tax: Uttar Pradesh lags behind in paying direct tax at number one in terms of population, Maharashtra at first place with Rs 7.62 lakh crore.