India Forex Reserve: A major fall in foreign exchange reserves in efforts to stop the rupee from falling

India Forex Reserves: To stop the ongoing fall in the rupee, the RBI has to sell dollars again and again, due to which there has been a big decline in India’s foreign exchange reserves. For the week ending October 14, 2022, the foreign exchange reserves have fallen to the lowest levels in many years. According to the data released by the RBI, the foreign exchange reserves have come down to $ 528.37 billion.

According to the Reserve Bank of India, for the week ending October 14, 2022, there has been a decline of $ 4.50 billion in foreign exchange reserves and it has come down to $ 528.37 billion. Earlier, in the week ending October 7, the foreign exchange reserves had seen an increase for the first time in 10 weeks. Last year on September 3, 2021, the foreign exchange reserves were $ 642.453 billion. Which was reduced to $ 607 billion in March this year and has now come down by $ 114.08 billion to $ 528 billion.

Foreign currency assets have declined by $2.83 billion to 468.67. So there has also been a decline in the gold reserve and it has come down by $ 1.50 billion to $ 37.45 billion. In fact, there was a big fall in the rupee against the dollar. The rupee fell to the level of 83.35. To save the rupee from falling against the dollar, the RBI has so far sold $114 billion from its foreign exchange reserves.

According to IDFC First Bank, if the current account deficit is 4 percent, then the foreign exchange reserves may fall to the level of $ 510 billion. However, RBI Governor Shaktikanta Das has said that despite the volatility in the market, the foreign exchange reserves have been better. He said that in view of the market situation, RBI has been interfering continuously.

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