By Admin 
India Forex Reserve: The country’s foreign exchange reserves have declined amid the ongoing tension between India and Pakistan. According to the new data from the Reserve Bank of India (RBI), India’s foreign exchange reserves have broken their records to continue to grow continuously for 8 weeks with a decline of $ 2.06 billion in the week ended May 2. With this decline, India’s total foreign exchange reserves have come to $ 686.06 billion, compared to $ 1.98 billion to $ 688.13 billion in the week ended April 25.
Minor edge in foreign currency assets
The largest component of India’s foreign exchange reserves increased to $ 581.18 billion with a slight increase of $ 514 million. Foreign exchange assets expressed in terms of dollars include the value of non-American units such as euros, pounds and yen placed in foreign exchange reserves. However, an increase in foreign exchange assets was compensated by $ 2.55 million in gold reserves, which has now come down to $ 81.82 billion.
It can now be imported for so many months
The SDR or special drawing rights to be placed near the IMF also fell by $ 30 million to $ 18.56 billion. The Reserve Bank estimated that the foreign exchange reserves that the country still has is sufficient to bear the expenses of estimated imports for about 10-12 months.
The fluctuations in the country’s foreign exchange reserves are in line with the pattern being seen since September, when the reserve gradually reached a record high level of $ 704.89 billion before falling. During that time the rupee reached a record low against the US dollar. Then the Reserve Bank’s intervention in the foreign exchange market helped prevent instability.
Last year, the country’s foreign exchange reserves increased by more than $ 20 billion. Whereas in 2023, foreign exchange reserves increased by about 58 billion dollars. Which is contrary to a decline of $ 71 billion recorded in 2022.
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