Forex Reserves

India's foreign exchange reserves declined $1.3 billion to $719.8 billion in the week ended October 23 as a $2.7 billion fall in gold reserves offset gains in foreign currency assets

India's forex reserves fell by $1.27 billion to $719.75 billion in the week ended October 23, as a $2.65 billion decline in gold reserves outweighed gains in foreign currency assets.

Banks face higher costs to hedge interest payments on FCNR(B) deposits as RBI's new forex derivative rules require a 20 per cent reserve, while dollar-rupee forward premiums rise

India's forex reserves dropped by USD 5.011 billion to USD 721.016 billion during the week ended October 16, the Reserve Bank of India said on Friday. In the previous reporting week, the kitty declined by USD 8.578 billion to USD 726.027 billion. The reserves touched an all-time high of USD 785.706 billion for the week ended September 4, driven by heavy greenback inflow as part of a special concessional swap for deposits from the diaspora through which banks raised a record nearly USD 133 billion but have been on a declining trend ever since. Experts attribute the sharp decline in the kitty to deployment of FCNR(B) resources and currency defence put up by the RBI through dollar sales. For the week ended October 16, foreign currency assets, a major component of reserves, decreased by USD 5.758 billion to USD 591.847 billion, according to the data released by the Reserve Bank of India (RBI). Expressed in dollar terms, the foreign currency assets include effects of appreciation or ..

India has permitted imports of around 6,500 metric tons of silver over six months despite weak domestic demand, a move expected to ease local premiums while supporting global prices.

Recent measures have gone beyond merely curbing speculation in the foreign-exchange market policy rules 

Reserves have lost about $51.1 billion from their September 4 peak as the RBI supports the rupee amid higher crude oil prices; foreign currency assets fell $10.7 billion

The reserves have dropped from their recent peak of $785.71 billion on September 4, a decline of about $50 billion in less than a ‌month

Foreign exchange reserves have fallen for three straight weeks, losing about $38.2 billion, as the RBI intervenes to support the rupee amid higher crude oil prices

From RBI intervention in the rupee and questions over electoral-roll revisions to distressed assets, India's growth challenges and political grief, today's opinions examine institutional and economic

Foreign currency assets fell $14.8 billion during the week ended September 18, with an economist attributing $10.9 billion of the decline to actual dollar sales

India's forex reserves dropped by USD 14.881 billion to USD 765.901 billion during the week ended September 18 due to a fall in foreign currency assets, according to the RBI data released on Friday. In the previous reporting week, forex reserves had fallen by USD 4.924 billion to USD 780.782 billion. For the week ended September 18, foreign currency assets, a major component of reserves, fell by USD 14.816 billion to USD 630.980 billion, according to the data released by the Reserve Bank of India (RBI). Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in foreign exchange reserves. The value of gold reserves increased by USD 68 million to USD 111.292 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down USD 106 million to USD 18.739 billion. India's reserve position with the IMF stood at USD 4.89 billion.

RBI Deputy Governor Rohit Jain said banks have an opportunity to deploy FCNR(B) liquidity in the coming months, while maintaining healthy credit standards

The decline came after reserves posted their biggest-ever weekly increase of $44.9 billion, driven by strong foreign currency inflows under the RBI's swap window

Liquidity and bank lending will need careful management

Gold reserves, by contrast, declined by $2.59 billion to $113.81 billion during the week as gold prices fell 0.56 per cent to $4,429 an ounce

The week's policy agenda will focus on the coal gasification scheme, possible changes to plantation FDI rules and fresh forex reserves data

India's forex reserves jumped USD 11.475 billion to a new all-time high of USD 740.803 billion during the week ended August 28, the RBI said on Friday. In the previous reporting week, the kitty increased USD 12.422 billion to a USD 729.328, then a record high. The previous all-time high had stood at USD 728.494 billion was attained during the week ended February 27 this year, right before the onset of the Middle East conflict. The geopolitical tensions led to several weeks of a drop as the rupee and the RBI had to intervene in the forex market through dollar sales. The reserves have been increasing since the RBI announced the concessional forex swap initiatives in June this year amid a sharp depreciation in the local currency. The move has yielded over USD 132 billion in new flows. For the week ended August 28, foreign currency assets, a major component of the reserves, increased by USD 9.337 billion to USD 600.67 billion, the central bank's data showed. Expressed in dollar terms,

That swing has been made possible by a shift in forex management policy that was forged in the fire of the balance-of-payments crisis of 1991

Besides the uncertainty in West Asia, India must also be prepared for shifts in global financial conditions