Indian forex reserves grows for the fifth successive week at $642.63 billion: RBI data

According to the most recent data issued by the Reserve Bank of India (RBI), India’s foreign exchange reserves increased for the fifth consecutive week to reach a new all-time high of $642.631 billion in the week ending on March 22. The reporting week saw a $139 million increase in reserves. The week saw a rise in gold reserves from $347 million to $51.487 billion.

The central bank’s weekly statistical data revealed that India’s foreign currency assets (FCA), which make up the majority of the country’s forex reserves, decreased by $123 million to $568.264 billion.

RBI data and Forex Reserves

The assets that a country’s central bank or other monetary body holds are known as forex reserves. The effect of other currencies kept in reserves appreciating or depreciating is included in changes to foreign currency assets, stated in terms of dollars. India’s Reserve Tranche position in the International Monetary Fund is included in forex reserves.

The RBI occasionally steps in to the market. through managing liquidity, which may involve selling dollars, in order to stop the rupee from sharply declining.

The Reserve Bank of India (RBI) keeps a careful eye on the foreign exchange markets and only steps in to keep things orderly by limiting the rupee’s excessive volatility. On Thursday, the local currency and the dollar finished at 83.40. Due to a holiday, India’s financial markets were closed on Friday.