India’s foreign exchange assets increased by $ 6.536 billion to $ 526,021 billion
New Delhi:
India’s foreign exchange reserves increased by USD 7.196 billion to USD 595.976 billion in the week ended May 5, showed data released by the Reserve Bank of India on Friday.
Prior to the week ended May 5, the reserves increased by USD 4.532 billion to USD 588.780 billion.
Coming back to the latest RBI data, India’s foreign currency assets, the largest component of foreign exchange reserves, increased by USD 6.536 billion to USD 526,021 billion.
During the latest week gold reserves increased by USD 659 million to USD 46.315 billion.
In October 2021, the country’s foreign exchange reserves touched an all-time high of around USD 645 billion.
Much of the decline can be attributed to an increase in the cost of imported goods in 2022.
In addition, foreign exchange reserves had dropped substantially, as the Reserve Bank of India’s intervention in the market had hedged the rupee’s fall against the rising US dollar.
Typically, the Reserve Bank of India intervenes from time to time in the market through liquidity management, which includes selling dollars, with a view to arresting the steep depreciation in the rupee.
The Reserve Bank of India closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by controlling excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
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