There is a continuous decline in Indian foreign exchange reserves, in the week ending January 3, the total foreign exchange reserves of the country have decreased by 5.69 billion dollars. The Reserve Bank of India (RBI) said on Friday that in the previous week it had decreased by US $ 4.11 billion to US $ 640.28 billion.
Foreign exchange reserves have been declining for the last few weeks. The reason for this decline is being attributed to RBI's intervention in the foreign exchange market as well as valuation to reduce the fluctuations in the rupee. At the end of September, The currency reserves had increased to an all-time high of US$ 704.88 billion.
According to the data released by RBI on Friday, foreign currency assets, a major part of the foreign exchange reserves, declined by $ 6.44 billion to $ 545.48 billion in the week ending January 3. In dollar terms, the assets are Euro, Pound and Yen which are foreign currencies. They also have an impact. This means that if the pound and euro increase or decrease, its direct impact will be seen on foreign assets.
On the one hand, the country's foreign reserves have decreased. On the other hand, the country's gold reserve has increased. Gold reserves have increased by $ 824 million in a week, which has now increased to $ 67.09 billion. At the same time, SDR has decreased by $ 58 million to $ 17.81 billion and according to the data of the Reserve Bank, India's forex reserve with the International Monetary Fund (IMF) decreased to $ 4.199 billion in the review week.
India's foreign exchange reserves have been falling for the last several weeks. The main reason behind this is considered to be the decline of the Indian rupee. In fact, the Indian rupee is also continuously falling and the US dollar is strengthening, the effect of which is directly visible on the Indian currency reserves.
