India's foreign exchange reserves declined by a huge $2.23 billion to $275.49 billion on a sharp dip in the foreign currency assets, the Reserve Bank said on Friday.
Foreign currency assets, a major component of the forex reserves, dipped by $3.056 billion to $258.51 billion for the week ended May 31, the Reserve Bank.
Reserve Bank Governor Shaktikanta Das on Monday said with the country's foreign exchange reserves at $677 billion, it is comfortably placed to deal with any spillover effects and for financing of the current account deficit. Over the last three years, the country's foreign exchange reserves have surged by $270 billion. He said as per the latest data, the foreign exchange reserves are $622 billion.
The foreign exchange reserves rose by a robust $1.637 billion to touch $296.63 billion during the week ended December 14 on the back of healthy addition of core currency assets, the Reserve Bank said.
Having exposure to international funds and gold is a must for those who have foreign currency-denominated goals.
Promoters or issuers of foreign currency convertible bonds may be allowed to buy back the bonds if they go in for prepayment.
Last week, the forex reserves had surged by $2.374 billion to $363.171 billion.
In the previous week, the reserves had fallen by $3.028 billion to $360.797 billion.
The foreign exchange reserves fell by $502.4 million to $293.97 billion due to fall in the currency assets, according to Reserve Bank data released on Friday.
'To the believers of crypto regulations, I have only one question to ask, how will you regulate it?'
Rajan said that despite easy liquidity, banks have passed rate cuts into lending rates modestly.
Frantic dollar demand from corporates along with an aggressive hedging strategy adopted by importers in the wake of the currency volatility predominately took a toll on the domestic unit despite moves by the central bank to stabilise the currency.
Moody's and Fitch on Thursday downgraded Russia's sovereign rating to 'junk' grade following severe sanctions by western countries. While Moody's Investors Service downgraded Russia's long-term issuer and senior unsecured (local-and foreign-currency) debt ratings to 'B3' from 'Baa3', Fitch pulled down the rating on the country to 'B' from 'BBB', putting it on 'Rating Watch Negative'. The downgraded rating is in speculative or junk category reflecting default risk. It signifies that even through financial commitments are currently being met, the sovereign is vulnerable to high credit risk.
The gold reserves were unchanged at $26.61 billion, the apex bank said.
Moody's Investors Service on Tuesday lowered India's GDP growth forecast for the 2020 calendar year to 5.3 per cent, on coronavirus implications on the economy. Moody's had in February projected a 5.4 per cent real GDP growth for India in 2020. This too was a downgrade from 6.6 per cent earlier forecast.
As many as 58 companies raised money from automatic route and 8 firms raised via approval route.
'The rupee has lost value against all other major Asian currencies, including that of Bangladesh and, of course, China.' 'Why should this be the case when the Indian economy has been growing faster than these economies, other than China?'
There have been reports that the Rajapaksa brothers, which dominates the current Sri Lankan government, are not on the same page. Gota, it is said, is not on the same wave length as his elder brother, Prime Minister Mahinda Rajapaksa, the former president, or Finance Minister Basil Rajapaksa, who is seen to be the family's strategist.
Led by a new generation of entrepreneurs, India's family offices are shifting from traditional investments in physical and tangible assets like real estate to investing in technology, healthcare, and retail stocks. This new wave of family offices is engaging in stock market investments, including pre-IPO placements and secondary market operations. "Born into a world of technology, the next generation, especially those born after 2000, view technology as equally crucial as finance for running a business.
The Indian rupee, which has depreciated 1.1 per cent so far in August, is expected to decline further on the back of a strengthening US dollar and a weakening Chinese yuan, according to a Business Standard poll of analysts. The Indian rupee hit an all-time low recently, closing at 83.15 per dollar. Five of the 10 respondents said the Indian currency might touch 83.5 per dollar in August itself, while others said the worst could be over.
The ED had filed six cases in the Additional Chief Metropolitan Magistrate (Economic Offences Court-I) which had discharged the duo in two cases in 2015 and directed them to face the trial in other cases.
The five-time prime minister was re-appointed to the job on May 12 following the political circus precipitated by the unprecedented economic crisis in the island's history.
UAE Exchange partners ElectraCard Services to launch 'gocash', which enables cardholders to use appropriate currency loaded on the card.
"The DMK is not worried a wee bit," he said on the ED searches. Such an action by the ED was 'usual, ordinary and a drama' enacted to divert attention.
The marginal decline in reserves was on account of fall in foreign currency assets
The gold reserves remained unchanged at $18.151 billion.
Breaking the streak of continuous fall in outstanding amounts, non-resident Indian (NRI) deposits rose for the first time in the financial year to $134.54 billion in October 2022. The figure was $133.67 billion in September. Reserve Bank of India (RBI) data showed that NRI deposits were in shrinking mode for the first six months of FY23. They fell to $133.67 billion in September from $139 billion in March.
In the past 18 months, the department of revenue intelligence has seized 50 containers of cigarettes, valued at nearly Rs 200 crore
Hinting at further relaxation in the capital account convertibility norms, RBI Deputy Governor T Rabi Sankar on Thursday said the country is on the cusp of some fundamental shifts with regard to currency management. India has come a long way in achieving increasing levels of convertibility on the capital account and has broadly achieved the desired outcome for the policy choices in terms of achieving a stable composition of foreign capital inflow, Sankar said while addressing the Foreign Exchange Dealers' Association of India's (FEDAI) annual day meeting. Convertibility refers to the ability to convert domestic currency into foreign currencies and vice versa to make payments for balance of payments transactions.
For the week under review, Special Drawing Rights fell by $ 13 million to $4.19 billion, while India's reserve position with the International Monetary Fund was down $3.5 million to $1.14 billion.
India's foreign exchange reserves slipped marginally by $32.7 million to $293.53 billion, the Reserve Bank said.
The 'Buy Back Plus' scheme will enable customers to return the unspent foreign currency and travellers cheques at the same rate at which they had been purchased, after their return to the country.
Defending the new foreign investment guidelines released this week, commerce and industry minister Kamal Nath said on Friday the norms would not distinguish between different forms of foreign capital.
Foreign currency assets rose $1.569 billion to $329.58 billion
The Enforcement Directorate on Tuesday alleged that Dravida Munnetra Kazhagam leader and Tamil Nadu Higher Education Minister K Ponmudy issued "illegal" red sand mining licenses to his MP son, relatives and some benami holders, and that huge amount of "hawala" funds generated from this mining business was used to purchase companies abroad.
India's foreign exchange reserves shot up to an all-time high of $339.99 billion.
Finance Minister P Chidambaram on Friday launched trading in currency futures at the National Stock Exchange in Mumbai.
The total foreign exchange reserves had increased by $1.838 billion to $297.28 billion in the previous reporting week.
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