India Forex Reserves: Big decline in foreign exchange reserves! Know how much is left in India’s forex reserve now

India Forex Reserves: The country’s foreign exchange reserves declined by $8.09 billion to $688.89 billion in the week ending May 15. The Reserve Bank of India (RBI) gave this information on Friday. Last week, foreign exchange reserves had increased by $ 6.29 billion to reach $ 696.99 billion. Foreign exchange reserves had reached an all-time high of $728.49 billion in the week ended February 27, before the conflict broke out in West Asia.

After this, due to increasing pressure on the rupee and intervention by the RBI in the foreign exchange market through sale of dollars, the currency reserves declined for several weeks. On May 11, Prime Minister Narendra Modi has also appealed to the countrymen to reduce foreign trips, reduce fuel consumption and avoid buying gold for a year, so that foreign exchange can be saved.

According to RBI data, in the week ending May 15 foreign exchange reserves Foreign currency assets, a key component of foreign exchange assets, declined by $6.48 billion to $545.90 billion. Foreign currency assets expressed in dollar terms also include the effect of fluctuations in the value of non-US currencies such as the euro, pound and yen included in foreign exchange reserves.

The value of gold reserves also declined by $1.54 billion during the week to $119.32 billion. RBI said that Special Drawing Rights (SDR) declined by $ 49 million to $ 18.82 billion. India’s reserve position in the International Monetary Fund (IMF) also declined by $25 million to $4.85 billion.

Important indicator of economic strength

Forex reserves are an important indicator of the economic condition of any country. This gives the central bank the ability to intervene in the market when needed and keep the rupee stable, and it also reflects the inflow of foreign investment.

How does foreign currency come to India?

India receives foreign exchange from several major sources, including exports, foreign direct investment (FDI), foreign portfolio investment (FPI) and remittances by Indians living abroad. When India exports goods and services to other countries, it receives foreign exchange in return.

Also read: Dollar vs Rupee: Rupee strengthened against US dollar, rose by 63 paise to reach 95.73; rise for the second consecutive day

At the same time, the money that Indians working abroad send to their families also plays an important role in strengthening the country’s foreign exchange reserves. The Reserve Bank of India (RBI) manages the foreign exchange coming through all these channels and keeps it safe as the country’s foreign exchange reserves.