Forex reserves: India's foreign exchange reserves increased by US $ 1.85 billion

The Central Reserve Bank (RBI) said that the country's foreign exchange reserves have increased. According to RBI, India's foreign exchange reserves increased by US$ 1.853 billion to US$ 595.051 billion. Apart from this, there has also been an increase in foreign currency assets. Know here what is the full news and what happens to foreign exchange reserves and how countries take advantage of it.

Fri, 07 Jul 2023 08:31 PM (IST)
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Forex reserves: India's foreign exchange reserves increased by US $ 1.85 billion

India's foreign exchange reserves increased by US$ 1.853 billion to US$ 595.051 billion in the week ended June 30, the Reserve Bank of India (RBI) said today.
The country's total reserves declined by US$ 2.901 billion to US$ 593.198 billion in the previous reporting week.
According to the weekly statistical supplement released by RBI on Friday, for the week ended June 30, foreign currency assets which is a major component of foreign exchange reserves, increased by US$ 2.539 billion to US$ 527.979 billion.
Expressed in dollar terms, foreign currency assets include the effect of appreciation or depreciation of non-US units such as the euro, pound, and yen held in foreign exchange reserves.
In October 2021, the country's foreign exchange reserves had reached an all-time high of US $ 645 billion and this reserve declined because of the pressure caused by global growth, the central bank raised funds to protect the rupee. Was busy collecting.
The RBI said gold reserves decreased by USD 472 million to USD 43.832 billion. The Reserve Bank said the Special Drawing Rights (SDRs) declined by USD 95 million to USD 18.239 billion.
The country's reserve position with the IMF declined by USD 118 million to USD 5.002 billion in the week under review, according to RBI data.
Foreign exchange reserves are assets held on reserve in foreign currencies by a central bank. These reserves are used to repay liabilities and influence monetary policy.
Foreign exchange reserves may include bank notes, deposits, bonds, treasury bills, and other government securities. These assets serve a number of purposes but most importantly they are held to ensure that the central government agency has backup funds in case their national currency devalues rapidly or becomes completely insolvent.

Muskan Kumawat Journalist & Writer