Page 6 - Foreign Exchange Reserves

RBI asks banks to set aside capital, provisions for unhedged FX exposure

Move comes amid sharp depreciation in rupee; says losses incurred by entities with such exposure could affect health of banking system

Forex reserves decline to over two-year low to $532.66 bn: RBI data

India's foreign exchange reserves fell to $532.66 billion in the week through Sept. 30, their lowest level since July 2020, the Reserve Bank of India's (RBI) weekly statistical supplement showed

67% of fall in forex reserves due to valuation changes: RBI governor Das

Das reiterated on Friday the RBI does not target any particular level for the domestic exchange rate and only intervenes in the market to smoothen out excessive volatility

Fall in forex reserves due to rupee depreciation not worrying, say experts

The decline in foreign exchange reserves of the country due to the depreciation of the rupee is not a worrying factor, and there is coverage for nine months of imports, experts said here on Thursday. The country's forex kitty continued its southward journey, with the overall reserves declining by USD 5.219 billion to USD 545.652 billion for the week ended September 16, the Reserve Bank of India had said. The reserves, which have been dipping as the central bank deploys the kitty to defend the rupee amid pressure caused majorly by global developments, had declined by USD 2.23 billion to USD 550.87 billion in the previous week. State Bank of India Group Chief Economic Adviser Soumya Kanti Ghosh said, "India's foreign exchange reserves have gone down from USD 630 billion to USD 550 billion. But is not a cause for concern as there is coverage for nine months of imports." However, he said the rupee should find some value. HDFC Bank Chairman Atanu Chakrabarty said India is not decoupled

India FX reserves set to shrink further, stir memories of 2008 crisis: Poll

Those reserves are forecast to fall another $23 bn to $523 bn by the end of this year, according to the median forecast from a Sept. 26-27 Reuters poll of 16 economists

Asian central banks need broader foreign exchange defence as reserves slide

India is already estimated to have spent $75.1 bn this year supporting the rupee in the spot and forward markets, while China has probably spent $39.6 bn

RBI may need to reload reserves as rupee falls further: HDFC economist

The Reserve Bank of India may need to find ways to replenish its foreign exchange reserves such as encouraging non-resident Indians to deposit more funds, as it looks to stabilise a depreciating rupee

Rupee loses 10% vs USD over a year, FX reserves fall to near 2-yr low

The rupee has depreciated 9.7 per cent against the dollar since September 2021

Forex reserves shrink faster than under 2008 global crisis, taper tantrum

BoP deficit, longer US tightening cycle may lead to slower pace of RBI intervention

Govt's intervention to protect rupee takes large bite from record reserves

While economists and the Reserve Bank of India aren't ringing any alarm bells just yet, investors are watching closely given the rupee's slump to an all-time low last month

Stagflation-free Asia leaving taper tantrums behind as currencies fare well

The foreign-exchange stockpiles Asian economies built up have helped cushion the impact of this year's market turmoil, which has spurred the largest equity outflows for at least a decade.

Dwindling foreign exchange reserves spells risk for EM currencies

Thailand saw the biggest drop in reserves as a percentage of the gross domestic product, followed by Malaysia and India, according to data compiled by Bloomberg

India's foreign exchange reserves fall to lowest in 23 months

RBI's defence of the rupee cited as reason

Top headlines: Indian forex reserves, Kharif rice production, and more

Foreign exchange reserves declining to government making first disbursement under PLI scheme, here are the top headlines of the day

India has ample forex to withstand pressure on creditworthiness: S&P

India has built up buffers against cyclical difficulties and has ample foreign exchange reserves to withstand pressure on credit worthiness, S&P Global Ratings said on Thursday. Speaking at the India Credit Spotlight 2022 webinar, S&P Sovereign & International Public Finance Ratings Director Andrew Wood said the country has a strong external balance sheet and limited external debt, making debt servicing not so expensive. "The country has built up buffers against cyclical difficulties like those, which we are experiencing right now," Wood said. He said the rating agency does not expect the near-term pressures to have a serious impact on India's credit worthiness. "We are expecting a strong level of GDP growth of 7.3 per cent this fiscal," he said, adding the rupee exchange rate movement against the US dollar has been moderate. The rupee has depreciated about 7 per cent against the US currency this year but has performed better than its emerging market peers. Wood said India

Pak mulls taking upfront cost of CPEC projects to boost forex reserves

Pakistan is reviewing a proposal to receive upfront 20 per cent of the total cost of five China-Pakistan Economic Corridor (CPEC) projects as deposits in the central bank in a bid to get breathing space amid declining foreign exchange reserves, a media report said on Sunday. The proposal has been discussed at the highest level as Prime Minister Shehbaz Sharif has given instruction to further fine-tune it, a Cabinet minister told The Express Tribune. He said that at least five CPEC projects were discussed during a meeting, having a total estimated value of USD 7 billion. Under the proposal, Pakistan can receive at least USD 1.4 billion in its central bank out of the total cost of USD 7 billion. In return, these five projects that are facing years of delay will be put on the fast track for implementation. Pakistan's gross official foreign exchange reserves have dipped below USD 8 billion and will get a USD 1.2 billion boost by the end of this month once the International Monetary Fun

Foreign exchange reserves fall $2.24 bn to $570 bn; FCA dips to $506.9 bn

The country's foreign exchange reserves fell USD 2.238 billion to USD 570.74 billion in the week ended August 12, according to the Reserve Bank of India (RBI) data. In the previous week ended August 5, the foreign exchange reserves declined USD 897 million to USD 572.978 billion. The fall in the reserves in the reporting week ended August 12 was on account a decline in the Foreign Currency Assets (FCA), a major component of the overall reserves, according to the Weekly Statistical Supplement released by RBI on Friday. FCA declined USD 2.652 billion to USD 506.994 billion, the data showed. Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves surged USD 305 million to USD 40.618 billion. The Special Drawing Rights (SDRs) increased USD 102 million to USD 18.133 billion. The country's reserve position with IMF also rose by USD 7 million to USD 4.994 billion

Foreign exchange reserves fall $897 mn to $572.98 bn in week ending Aug 5

India's foreign exchange reserves fell $897 million to $572.978 billion in the week ended August 5, according to the Reserve Bank of India's (RBI) bulletin weekly statistical supplement

Rupee won't go into free-fall even if CAD widens to 3-3.5%: BoA's Mehta

RBI needs to be fourth buyer in the bond market, says senior executive

As rupee continues to slide, RBI may be back to spot intervention

Reserve Bank of India's foreign-exchange reserves have fallen by about $30 billion since the end of May to $573 billion, according to its data