Gold Prices: Fall In Gold Prices Drags Forex Down By $462mn | Mumbai News

Mumbai: The country’s total foreign exchange reserves declined by $462 million to $590.3 billion during the week ended November 10.The decline in reserves was despite an increase in foreign currency assets and reflected the fall in the value of gold held by RBI. Gold reserves were valued at $45.5 billion, down $608 million over the week.The steady level of reserves was despite the rupee weakening to a new low of 83.34 on November 10. Special Drawing Rights with the IMF, which comprise part of reserves, amounted to $18 billion — an increase of $36 million over the week. During the current financial year, the reserves have witnessed an increase of $11.9 billion. Compared to the 12 months, reserves are higher by $45.6 billion.RBI, meanwhile, has permitted banks to open additional current account for exports proceeds in addition to special rupee vostro accounts, providing greater operational flexibility to exporters, said report agencies. In July 2022, RBI had asked banks to make additional arrangements for export and import transactions in rupees.“To promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in rupee, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in rupee,” it said. India has been trying to promote rupee trade following the Russia-Ukraine war.
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India’s forex reserves drop $ 462 million to $ 590.321 billion

India’s foreign exchange reserves decreased by $462 million to $590.321 billion in the week ending November 10. This comes after a previous increase of $4.672 billion. The forex reserves reached an all-time high of $645 billion in October 2021. The decline was due to the central bank using the reserves to defend the rupee against global pressures. Foreign currency assets increased by $108 million to $522.004 billion, while gold reserves decreased by $608 million to $45.515 billion. The Special Drawing Rights (SDRs) increased by $36 million to $18.011 billion, and the reserve position with the IMF increased by $3 million to $4.791 billion.

Fall in gold prices drags forex down by $462 million

India’s foreign exchange reserves decreased by $462 million to $590.3 billion, despite an increase in foreign currency assets. The decline was due to a decrease in the value of gold held by the Reserve Bank of India (RBI). Gold reserves were valued at $45.5 billion, down $608 million. The rupee also weakened to a new low of 83.34. However, the reserves have increased by $11.9 billion during the current financial year. RBI has allowed banks to open additional current accounts for export proceeds, providing more flexibility for exporters.

Exports up 6.21% to $33.57 billion in October; trade deficit high at $31.36 billion: Govt data

India’s merchandise exports in October increased by 6.21% to $33.57 billion, despite a trade deficit of $31.46 billion. Imports also rose to $65.03 billion. From April to October, exports fell by 7% to $244.89 billion, while imports decreased by 8.95% to $391.96 billion. The Commerce Secretary sees the October trade numbers as a positive sign of recovery in outbound shipments.