Your foreign exchange reserves have decreased for the third week in a row, know why this happened

BombayThere was again a decrease in the country’s foreign currency holdings. This is the third week in a row that it has fallen. Its effect is visible on the country’s foreign exchange reserves. This is why during the week ending August 19, 2022, there was a huge decrease of $6.68 billion in India’s foreign exchange reserves. Earlier, during the week ended August 12, 2022, there was a $2.23 billion decrease in foreign exchange reserves. However, there was an increase in foreign exchange reserves the previous week.

Then there was a decline for the third week in a row
According to information received from the Reserve Bank of India (RBI), the country’s foreign exchange reserves decreased by $6.687 billion to $564.053 billion during the week ended August 19, 2022. Earlier on August 12, they were down $2.23 billion. at $570.74 billion. It had also declined during the week ending August 5 of the same month. However, during the week ended July 29, its foreign exchange reserves increased by $2.4 billion to $573.875 billion. Previously, the country’s foreign exchange reserves had shrunk for four straight weeks.

Currency holdings also fell
The main reason for the decline in foreign exchange reserves during the week ended August 19 is the occurrence of foreign currency assets. It is an important part of total foreign exchange reserves. Foreign exchange assets (FCA) fell by $5.77 billion to $501.216 billion in the week under review, according to RBI’s weekly data for India released on Friday. Foreign currency assets held in foreign exchange reserves, expressed in dollars, include the effects of the appreciation or depreciation of non-US currencies such as the euro, pound and yen.

Decrease in gold reserves
According to the data, the value of gold reserves fell by $704 million to $39.914 billion during the week under review. It had risen by $305 million to $40.61 billion the previous week.

The DTS has also decreased

During the week under review, Special Drawing Rights (SDR) deposits with the International Monetary Fund (IMF) decreased by $146 million to $1,798 billion. While the country’s foreign exchange reserves kept with the IMF also fell by $58 million to $4.936 billion. It had risen by $7 million in the previous week.

Source: navbharattimes.indiatimes.com

: Language entries

This message comes from newspapers, magazines and third-party websites. For more information, please check NewsDay Express Disclaimer.