The Reserve Bank of India may move forward to accumulating more gold as the yellow metal is expected to shine in the years to come. "A weaker dollar could diminish the value of India's foreign exchange reserves and hence this could lead to further accumulation of gold by the RBI. This move will help India's central bank to hedge its downside risk on the foreign exchange reserves front," Angel Commodities Broking analyst Amar Singh said.
In rupee terms, the country's foreign exchange reserves rose by Rs 19,809 crore (Rs 198.09 billion) to Rs 12,49,819 crore (Rs 12,498.19 billion) in the week ended June 12, according to the latest data released by the Reserve bank of India.
Most of the Asia-Pacific economies would be cushioned by healthy foreign exchange reserves in the last quarter of the current calendar year, global ratings agency, Standard & Poor, said in a report.
With the next review of the flexible inflation target (FIT) framework coming up soon, the Reserve Bank of India (RBI) on Friday said the current inflation target of 4 per cent with a +/-2 per cent tolerance band is appropriate for the next five years. The country adopted the FIT framework in 2016, and the next review of the inflation target is due before March 31, 2021. "The current numerical framework for defining price stability, i.e., an inflation target of 4 per cent with a +/-2 per cent tolerance band, is appropriate for the next five years," the RBI said in the Report on Currency and Finance (RCF) for the year 2020-21.
Gold reserves rose by $588.8 million to $21.566 billion, as per the RBI data.
In the reporting week, foreign currency assets, which are a major component of the overall reserves, reduced by $ 633 million to $ 398.724 billion.
India's foreign exchange reserves fell $9.94 billion during the week ending October 10, 2008 to $274 billion mainly because the Reserve Bank of India continued to sell dollars to check the steep depreciation of the rupee.
'There is a misconception that gold is a dead asset in India.' 'Around 30 per cent of agriculture loans are collateralised by gold, Soumya Kanti Ghosh and Saket Hishikar, economists at the SBI, point out.
New Delhi has a chance to rid itself of its image as the bully in the subcontinent by helping a neighbour tackle problems that India, for once, has no role in creating. It should grab the opportunity with both hands, suggests Aditi Phadnis.
The government was also faced with problems on its balance of payments. It took steps to conserve declining foreign exchange reserves, and began to regulate the production, supply and distribution of gold. It banned forward trading in the yellow metal in November 1962, and introduced gold bonds as well, reveals the RBI's annual report for the year ending June 1963.
India's foreign exchange reserve fell by $550 million to $245.80 billion during the week ended November 21, 2008, due to revaluation in some foreign currencies and partial intervention by the Reserve Bank of India to check a steep depreciation of the rupee.
The country's gold reserves remained unchanged at $19.377 billion.
India's forex reserves recently declined by $704 million to $354.517 billion.
After a long debate with Planning Commission, Finance Minister P Chidambaram has finally agreed to consider funding infrastructure projects through the country's booming foreign exchange reserves that currently stand at about $170 billion.
The speed at which he led the central bank in different areas -- ranging from internal reorganisation to inflation fighting, stabilising the currency, taking on rogue corporations, cleaning up bank balance sheets, and opening the sector -- makes one believe that Rajan knew he had only three years to do his job. A fascinating excerpt from Tamal Bandyopadhyay's MUST-READ Roller Coaster: An Affair with Banking.
The total foreign exchange reserves had increased by $1.838 billion to $297.28 billion in the previous reporting week.
Foreign currency assets, which are a major component of the overall reserves, rose by $646.4 million to $386.762 billion.
'Earning expectations remain strong.'
The RBI has set up a panel to review ATM charges, and fees levied by banks.
The country's gross domestic product (GDP) growth is likely to be 8.8 to 9 per cent in the current financial year, driven by agriculture and industry sectors, Care Ratings said in a report. The country's economy had contracted by 7.3 per cent in fiscal 2020-21. The agency said the outlook for the Indian economy on almost all counts in FY22 would look seemingly better than FY21 on account of the negative base effect.
Contradicting the International Monetary Fund, which does not want India and other countries to use any of its foreign exchange reserves for building infrastructure
India's gold holding in forex reserves rose to 560.3 tonnes by the end of March 2018.
Increase in gold imports pushed the country's trade deficit to a five-month high of $ 15.33 billion in April.
Planning Commission on Thursday said a desicion was expected shortlyon using foreign exchange reserves for infrastructure projects.
The country's reserve position with the International Monetary Fund also increased by $ 3.6 million to $ 3.344 billion.
India's foreign exchange reserves grew marginally by $253 million to $141.45 billion for the week ended April 8, 2005.
Reconstruction efforts after the Russia-Ukraine war will be dominated by the heft of the membership of major nations across international organisations. India is hamstrung because it does not play host to any major global institution nor does it hold positions of significant influence in the ones in which it has membership. As a result, the world's sixth largest economy is obliged to follow the rules set by most of them.
The forex reserves stood at $144.375 billion, a rise of $1.738 billion, during the week under review, according to Reserve Bank of India's weekly statistical supplement released in Mumbai on Saturday.
Growth in India's gross domestic product for the June quarter of 2013-14, as well as for the entire 2014-15, was 4.7%.
Pakistan Muslim League-Nawaz (PML-N) president Sharif, 70, and Pakistan Tehreek-i-Insaf (PTI) vice-chairman and former foreign minister Shah Mahmood Qureshi on Sunday filed their nomination papers for the post.
Khan, 69, was not present in the lower house at the time of voting. His party lawmakers staged a walkout.
India's foreign exchange reserves fell for the second consecutive week, registering a decline of $423 million for the week ended May 6, 2005.
Bolstered by heavy inflows, India's foreign exchange reserves rose by $515 million, crossing the $119 billion mark.
Foreign exchange reserves as a percentage of India's total external debt were 73 per cent at the end of December 2015.
India's management of foreign exchange reserves has generally been in accordance with International Monetary Fund guidelines and comparable to global best practices.
India's foreign exchange reserves touched nearly $133 billion due to record buying by the central bank and revaluation of international currencies.
Let's take a look at economies that have some of the highest debts in the world.
India's foreign exchange reserve rose by $266 million during the week ending January 14, 2005, after a drop over $2 billion a week earlier.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances