forex reserves: India’s forex reserves down by $2.8 bn to $640.33 bn as of April 19

India’s forex reserves contracted by $2.83 billion to $640.33 billion as of April 19, latest data published by the Reserve Bank of India showed on Friday.Previously, forex reserves decreased by $5.4 billion to $643.16 billion, for the week ended on April 12, 2024.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) contracted by $3.79 billion to $560.86 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves increased by $1.01 billion to $56.81 billion, whereas SDRs were down by $43 million to $18.03 billion.

Reserve position in the IMF dipped by $2 million to $4.63 billion.

It can be noted that this month, the country’s forex kitty had reached an all-time high of $645.6 billion.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

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