BUSINESS

India’s foreign exchange reserves increased by $5 billion in a single week

According to the most recent figures issued by the RBI on Friday, India’s foreign currency reserves climbed by $5.077 billion to $595.397 billion for the week ending November 17.

The previous week, which concluded on November 10, saw a $462 million decline in the FX kitty, bringing it to $590.32 billion.

SDRs increased by $120 million to $18.13 billion, while gold reserves increased by $527 million to $46.04 billion. For the week ending November 17, the IMF’s reserve position increased by $42 million to $4.83 billion.

Gains in foreign currency reserves are beneficial since the RBI utilizes them to keep the rupee stable during tumultuous times.

When the rupee is under pressure, the RBI steps in by releasing additional dollars into the spot and forward currency markets to keep it from falling too far.

The RBI has less ability to act in the market to stabilize the rupee in the event of a significant decrease in the nation’s foreign exchange reserves.

 

Related Articles

Back to top button