India’s foreign exchange reserves touch six-month high of $573.7 billion: RBI


India’s foreign exchange reserves rose by $1.727 billion to $573.727 billion in the week ending on January 20, according to Reserve Bank of India’s (RBI) data.

The reserves hit about six-month highs with the latest two consecutive weeks’ rise, the RBI’s Weekly Statistical Supplement Bulletin said.

During the week that ended on January 13, the reserves rose by $10.417 billion to $572.0 billion, earlier data showed.

According to RBI’s latest data, India’s foreign currency assets, the biggest component of the forex reserves, rose by $839 million to $506.358 billion.

Gold reserves rose by $821 million to $43.712 billion.

For context, at the start of 2022, India’s foreign exchange reserves stood at $633 billion. Much of the decline can be attributed to RBI’s intervention and a rise in the cost of imported goods.

In October 2021, the country’s foreign exchange reserves had touched an all-time high of about $645 billion.

Forex reserves had been intermittently falling for months now, barring the latest jump, largely because of the RBI’s intervention in the market to defend the depreciating rupee against a surging US dollar.

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.

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