India’s foreign exchange reserves fall by $11.17 trillion in biggest weekly decline on record: report
Foreign Reserve Levels: For the previous week – ending March 25 – reserves decreased by $2.03 billion to $617.648 billion.
India’s foreign exchange reserves fell by $11.17 billion for the week ending April 1 – the biggest weekly drop on record – to $606.475 billion, the agency reported on Saturday. press release citing Reserve Bank of India data. The fall was attributed to the pressure on the Indian rupee following the conflict in Ukraine, the continued impact of the Covid pandemic and other geopolitical developments.
The value of gold reserves also fell – from $507 million to $42.734 billion, according to RBI data.
For the previous week – ending March 25 – reserves fell by $2.03 billion to $617.648 billion. The worst previous weekly drop was $9.6 billion for the week ending March 11.
This is the fourth straight week of falling foreign exchange reserves as the RBI intervenes in currency markets through dollar sales to prevent a decline in the value of the rupiah amid the conflict in Ukraine.
Foreign exchange reserves have shrunk by more than $26 billion in the past four weeks for which data is available.
Last week’s sharp decline was due to lower base currency assets, which fell from $10.727 billion to $539.727 billion. Expressed in dollars, foreign currency holdings include the effect of the appreciation or depreciation of non-US units such as the euro, pound and yen held in foreign exchange reserves.
The RBI issued its first monetary policy for the 2022/23 financial year on Friday, in which it kept key rates unchanged; the repo rate is 4% and the repo rate is 3.35%.
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RBI Governor Shaktikanta Das said the six-member monetary policy committee had voted unanimously to leave rates unchanged and maintain the central bank’s “accommodative” stance.
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Das also said India’s projected real GDP is expected to be 7.2% and quarterly inflation projections are 6.3% in the first quarter, 5% in the second quarter, 5.4% in the third. quarter and 5.1% in the fourth quarter.
With the contribution of PTI