India’s foreign exchange reserves jump by $1 billion, forex reserves cross $672.5 billion; See latest update

India Forex Reserve Latest Update: According to data released by the Reserve Bank of India on Friday, India’s foreign exchange reserves increased by $ 963 million to $ 672.587 billion in the week ending June 19, which has compensated for the decline recorded in the previous week. During the review period, the value of India’s gold reserves increased by $ 4.11 billion to $ 107.930 billion. However, India’s Special Drawing Rights (SDR) holding with the International Monetary Fund (IMF) declined by $52 million to $18.647 billion.

Earlier in the reporting week, a decline in the country’s foreign exchange reserves was recorded. Despite recent fluctuations, India’s foreign exchange reserves remain among the largest in the world. However, it is still below the record high of $728.494 billion recorded in the week ending February 27.

The impact of the Middle East crisis was visible

After the conflict broke out in West Asia in recent months foreign exchange reserves But the pressure had increased. During that time, to support the rupee, RBI had intervened by selling dollars in the foreign exchange market. Meanwhile, the RBI this week issued clarifications on operational aspects related to foreign currency non-resident bank (FCNR-B) deposits. This clarification was given in response to questions raised by banks regarding FCNR-B deposit mobilization and related lending activities.

Hope of relief from new rules of RBI

RBI clarified that banks can also give loans to FCNR-B account holders and can also create lien (mortgage rights) on these deposits. This will provide greater operational flexibility to banks in raising foreign currency deposits from Non-Resident Indians (NRIs). The central bank also said that if banks have raised fresh and eligible FCNR-B deposits with an original tenure of at least three years under the special scheme, they will also be able to undertake foreign currency swaps with an original tenure of less than three years.

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There will be an increase in investment and cash flow

under this arrangement reserve Bank of India It will provide plain buy-sell foreign currency swap facility to banks. This facility will be applicable only on the principal amount of the deposit and will not include the interest amount. Market experts believe that increased interest rates on FCNR-B deposits, RBI’s swap facility and operational clarity may see a pick-up in investment and forex inflows from NRIs in the coming weeks.