India's Forex Resreve

A comfortable level of foreign exchange reserves will further bolster macroeconomic stability, RBI Governor Shaktikanta Das said while announcing the bank's monetary policy decision on Thursday.

Early gains in domestic equity markets and a weak dollar against world currencies, however, restricted the rupee's losses

The RBI purchased US dollars worth $22.28 billion and sold US dollars worth $17.92 billion in November, data in the central bank's January 2023 Bulletin showed

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According to analysts, the increase in the RBI's reserves is owing to revaluation as well as the central bank's purchases of the greenback as it looks to replenish the reserves

The latest decline in the reserves was primarily on account of a fall in the RBI's gold reserves, which fell by $705 million to 37.06 billion

Rising global commodity prices have widened India's current account deficit to 2.8% of GDP in Q1. But RBI Governor says, forex reserves compared favourably with most peer economies. Here's more

Those reserves are forecast to fall another $23 bn to $523 bn by the end of this year, according to the median forecast from a Sept. 26-27 Reuters poll of 16 economists

Economic affairs secretary Ajay Seth on Tuesday dismissed the concerns over depletion of forex reserve as "overblown" and said India has fairly large reserve to tide over the current situation. Foreign exchange reserves were down for a seventh continuous week, dropping to USD 545.65 billion on September 16. The reserves, which have been dipping as the central bank deploys the kitty to defend the currency amid a pressure caused majorly by global developments, had declined by USD 2.23 billion to USD 550.87 billion in the previous week. "There has been a depletion as inflows have come down and trade deficit is higher...I don't see this as a concern, India has fairly large reserves to tide over this situation," Seth said. After hitting a record low at 81.67 against dollar on Monday, the rupee recovered on Tuesday and closed at 81.58 against the greenback. Finance minister Nirmala Sitharaman on Monday had said "due to the strength of our microeconomic fundamentals, rupee is holding out

So far in 2022, the local currency has depreciated 8.2 per cent versus the greenback

During the reporting week ended July 8, the decrease in the reserves was on account of a fall in the Foreign Currency Assets, a major component of the overall reserves, and in gold reserves, RBI said.

In the previous week ended March 4, the reserves rose $394 million to $631.92 billion

The overall reserves had increased by USD 2.762 billion to USD 632.952 billion in the previous reporting week

The country's foreign exchange reserves declined by $1.763 billion to $630.19 billion in the week ended on February 11, the RBI data showed.

FCAs rose by $950 million to $577.951 billion, as per weekly data by the Reserve Bank of India

The central bank's gold reserves stood at 705.6 tonnes as on June 30. The gold reserves were at 558.1 tonnes in the beginning of 2018

This comes after it declined for two consecutive quarters

The country's foreign exchange reserves fell by $249 million, RBI data showed on Friday

The country's foreign exchange reserves declined by $290 million to $580.841 billion in the week ended December 25, RBI data showed

The country's foreign exchange reserves surged by $2.563 billion to touch a record high of $581.131 billion in the week to December 18