Market downturns or regulatory shifts can reduce liquidity, making it harder to buy or sell assets when needed.
India's forex reserves dropped by $2.164 billion to $584.248 billion for the week ended April 21, the Reserve Bank said on Friday. In the previous reporting week, the overall kitty had risen by $1.657 billion to $586.412 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
The marginal decline in reserves was on account of fall in foreign currency assets
The country's foreign exchange reserves rose by $954.6 million to $294.36 billion on account of gains in the value of gold reserves, the Reserve Bank said.
Falling for the second consecutive week, India's forex reserves dropped by $4.34 billion to $589.14 billion for the week ended May 26, the Reserve Bank said on Friday. In the previous reporting week, the reserves had declined by $6.05 billion to $593.48 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
Supporting the industry ministry's proposal to set up a sovereign wealth fund to finance infrastructure projects, Chief Economic Adviser Kaushik Basu on Monday said India can use a part of its large foreign exchange reserves to create the fund.
Foreign currency assets were down $1.516 billion to $131.426 billion. While gold reserves increased $77 million to $4.453 billion, SDRs were unchanged at $4 million.
Among the Sensex firms, Sun Pharmaceuticals, Tech Mahindra, HCL Technologies, Infosys, Bajaj Finance, Eternal, Tata Consultancy Services, UltraTech Cement, Bajaj Finserv, Tata Steel, ITC and L&T were the major laggards. Asian Paints, Mahindra & Mahindra, BEL, Adani Ports, State Bank of India, Trent, HDFC Bank were among the gainers.
Continuing their upward march due to fresh inflows, India's foreign exchange reserves have further surged ahead by $711 million at $75.751 billion during the week ended April 11.
India's foreign exchange reserves surged ahead in the first week of the new fiscal following fresh accretion of over $1 billion to move past the record levels of $112 billion during the week ended April 2, 2004.
Country's foreign exchange reserves declined sharply by $3.433 billion to $351.920 billion.
Last week, the forex reserves had surged by $2.374 billion to $363.171 billion.
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.
India's foreign exchange reserves surged by $1.26 billion to $292.33 billion in the week ended February 7 on the back of a healthy increase in the currency assets, the Reserve Bank said.
After falling for two consecutive weeks, foreign exchange reserves marginally rose to $319.39 billion, up by $43.3 million, for the week, driven by an increase in foreign currency assets.
The Real Effective Exchange Rate (REER) of the rupee moderated in December to 107.20 after hitting a peak of 108.14 in November, latest data released by the Reserve Bank of India (RBI) showed. The REER was 103.66 in January 2024. The rupee depreciated around 3 per cent against the dollar in 2024.
Credit card payments for foreign travel will be brought under the purview of the Liberalised Remittance Scheme (LRS) of the Reserve Bank, to ensure that such expenses do not escape TCS (Tax Collection at Source). While moving the Finance Bill 2023 for consideration and passage in the Lok Sabha on Friday, Finance Minister Nirmala Sitharaman said the Reserve Bank has been asked to look into ways to bring credit card payments on foreign tours under the LRS. "It has been represented that payments for foreign tours through a credit card are not being captured under the Liberalised Remittance Scheme (LRS) and such payments escape tax collection at source (TCS)," she said.
t might not have been advisable to use the over $250 billion forex reserves to pump in the economy earlier when India had high inflation, but now with deflationary trends, the government should use it to remove infrastructure deficits. India's foreign exchange reserves stood at $249.278 billion during the week ended February 27.
The Union Budget is likely to adopt a three-pronged strategy to bring about the second green revolution in agriculture and evolve methods to tap the $119 billion foreign exchange reserves to boost investment.
The gold reserves remained unchanged at $18.151 billion.
The reserves had dipped by $1.12 billion in the previous reporting week.
Foreign exchange reserves have hit a fresh high.
India's foreign exchange reserves shot up by $960.2 million to $280.17 billion on the back of a healthy rise in currency assets in the week ended July 26, Reserve Bank said.
India's foreign exchange reserves showed a dip for the first time in several weeks after the government repaid $3.04 billion of loans in advance to multilateral agencies in the last week of February.
India's foreign exchange reserves rose by a healthy $1.51 billion to touch $279.240 billion in the week to October 11 on account of growth in a key component of the assets, the Reserve Bank said.
The overall reserves had jumped by $7.2 billion to $595.98 billion for the previous reporting week. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
FCAs decreased by $3.56 billion to $325.03 billion.
China is also the largest owner of the US Treasury securities.
The foreign exchange reserves rose for the fourth consecutive week with the week to October 25 adding another $1.828 billion taking the overall forex kitty to $282.95 billion, the Reserve Bank said on Friday.
Amid liquidity tightness in the banking system, certificate of deposit (CD) rates topped 8 per cent for some smaller banks, with rates remaining on the higher side for derivatives loss-hit IndusInd Bank. On Thursday, CSB Bank raised Rs 100 crore via one-year CDs at 8.5 per cent, while Utkarsh Small Finance Bank issued three-month CDs at 8.05 per cent to raise Rs 50 crore.
India's forex reserves have swelled by $12.74 billion to $609.02 billion in the week ended July 14, making it one of the strongest weekly surges in the kitty in recent times, the Reserve Bank of India said on Friday. In the previous reporting week, the overall reserves had risen by $1.23 billion to $596.28 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
The country's foreign exchange reserves rose by $1.434 billion in the week ended August 9, after dropping by $2.99 billion previous week, the Reserve Bank of India said.
The Institute of Economic Growth has forecast a depletion in the foreign exchange reserves to $79 billion in August mainly due to over $4 billion dollar payout of Resurgent India Bonds.
India's forex exchange reserves increased by $289 million to $640.401 billion for the week ended November 19, the Reserve Bank said on Friday. The overall reserves had declined by $763 million to $640.11 billion in the previous reporting week. They had touched a life time high of $642.45 billion in the week ended September 3, 2021.
While liquidity in the banking system has turned surplus in the last few weeks, it could go back to deficit again, mainly due to corporate advance tax outflows. The net liquidity surplus of the banking system rose to touch Rs 1 trillion on Tuesday on the back of government spending, according to the data released by the Reserve Bank of India.
The central bank may be permitted to lend to the oil companies through authorised dealers in foreign exchange at a cheaper rate of say 4.5-5 per cent. The oil companies can meet their import payment commitments in the foreign currency borrowed from RBI.
Foreign currency assets, a major component of the overall reserves, declined by $3.208 billion to $395.276 billion.
The reserves growth picked up speed in the second quarter, with $178 billion added, ending the decline in the first two months when monthly exports tumbled to near a decade low, the apex bank, People's Bank of China said on Wednesday. China's huge stockpiles, which expanded by 17.84 per cent in the first half year on year, are more than double those of Japan, the second largest holding $1.02 trillion.
India's foreign exchange reserves strengthened by $544.7 million to $275.35 billion on a healthy increase in the core currency assets in the week ended September 13.
India's gold holding in forex reserves rose to 560.3 tonnes by the end of March 2018.
