Foreign exchange reserves jump by $6 billion to reach $578.78 billion

India Forex Reserve Data: There has been a surge in Foreign Exchange Reserves again. According to the data released by the Reserve Bank of India, on March 24, 2023, the foreign exchange reserves have increased to $ 578.78 billion with a jump of $ 5.98 billion. Earlier in the week, the foreign exchange reserves stood at $572.8 billion.

This big jump in foreign exchange reserves has come due to a sharp jump in foreign currency assets of RBI. According to RBI data, there was a jump of $ 4.38 billion in foreign currency assets and it has increased to $ 509.72 billion. India’s gold reserve has increased by $ 1.37 billion to reach $ 45.48 billion. There has been a jump of $ 18.41 million in SDR, while there has been a jump of $ 5.15 million in India’s reserve in IMF.

At the beginning of the year 2022, India’s foreign exchange reserves would have been $ 633 billion, then in October 2021, the country’s foreign exchange reserves had reached an all-time high of US $ 645 billion. The latter is seeing a decline due to the use of currency reserves by the central bank to prevent a sharp fall in the exchange rate of the rupee amid global developments. Today the rupee has closed at Rs 82.16 against one dollar.

The decrease in foreign exchange reserves in the last months is also because imports have become costlier. So due to the strict monetary policy of RBI and Fed Reserve, the rupee has weakened. Investors are taking out their investments from emerging markets and investing in stable countries like America. So that investors can get huge returns even during strict monetary policy.

From time to time, RBI intervenes in the market through liquidity management, in which RBI also sells dollars so that the domestic currency can be saved from further weakening.

read this also

Saving Scheme Rate Hike: Sukanya Samriddhi, NSC, post office deposit schemes increased interest rates for those investing in small savings schemes