Check out the details of India’s foreign exchange reserves, which decreased by $2.36 billion to $583.53 billion

According to the most recent RBI statistics, India’s foreign currency (forex) reserves decreased by $2.36 billion to $583.53 billion in the week that ended on October 20. The total reserves rose to $585.895 billion in the preceding reporting week, a gain of $1.153 billion.

The nation’s foreign reserves hit an all-time high of $645 billion in October 2021. The reserves suffered when the central bank utilized them to support the rupee against pressure brought on mostly by events that have occurred globally since last year.

The foreign currency assets, which make up a significant portion of reserves, dropped by $4.15 billion to $515.2 billion for the week ending October 20, according per the RBI’s Weekly Statistical Supplement.

The impact of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves’ appreciation or depreciation is included in the foreign currency assets, which are expressed in terms of dollars.

During the week, gold reserves increased by $1.85 billion to $45.42 billion, according to the RBI. According to the apex bank, the value of the special drawing rights (SDRs) decreased by $70 million to $17.93 billion.

According to statistics from the apex bank, India’s reserve position with the IMF grew by $6 million to $4.98 billion during the reporting week.

“We do not have a specific exchange rate in mind with regard to our currency market intervention,” RBI Governor Shaktikanta Das said at a recent meeting with Krishna Srinivasan, Director, Asia and Pacific Department at the IMF.

He said, “Our strategy, focus, and emphasis is to prevent excessive volatility of the exchange rate.”

Das also demanded that “labelling like watch lists” be reviewed by the US and other nations and organizations.

Anil Kumar Bhansali, head of Treasury and executive director of Finrex Treasury Advisors LLP, commented on the movement of the rupee during the week that concluded on Friday, October 27: “The rupee moved in a range of 20 paise as RBI sold dollars at 83.25 and FPIs, Oil companies, and importers bought dollars on the small dips they got.” The rupee has been fluctuating for over a month, and it is predicted to stay there again this next week, between 82.90 and 83.35.

Additionally, he said that during the last 15 days, FPIs had taken out a net $800 million in debt and sold stocks in this market. FPIs have removed $2.6 billion on a net basis in the last two months.