Business News / India's foreign exchange reserves reach all-time high, tremendous increase of 2.98 billion dollars

Zoom News : Apr 13, 2024, 06:00 AM
Business News: India's foreign exchange reserves have reached its all-time high. An increase of $ 2.98 billion has been recorded in foreign exchange reserves in the week ending April 5. With this increase, the country's foreign exchange reserves reached a new all-time high of $648.56 billion. The Reserve Bank of India (RBI) has released this data of foreign exchange reserves on Friday, April 12, 2024.

Foreign exchange reserves reach all time high

In the last trading week, the country's foreign exchange reserves had increased by $ 2.95 billion to $ 645.58 billion, which was the all-time highest level till that time. Earlier in September 2021, the country's foreign exchange reserves stood at $642.45 billion, which was the highest level till date.

According to Reserve Bank of India data, in the week ending April 5, foreign currency assets, considered an important part of the currency reserves, increased by $ 549 million to $ 571.17 billion. Foreign currency assets denominated in dollar terms include the impact of movements in non-US currencies such as the euro, pound and yen held in foreign exchange reserves.

The Reserve Bank said that the value of gold reserves increased by $ 2.39 billion to $ 54.56 billion during the week under review. The Reserve Bank said that Special Drawing Rights (SDR) increased by $ 24 million to $ 18.17 billion. According to the Reserve Bank, India's reserve deposits with the International Monetary Fund (IMF) also increased by $9 million to $4.669 billion in the week under review.

Market intervention through liquidity management

Usually the Reserve Bank of India intervenes in the market from time to time through liquidity management including sale of dollars to prevent sharp fall in the rupee. The Central Bank closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by controlling excessive volatility in the exchange rate, without reference to any pre-determined target level or band.