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India's Forex Reserves Drop

  • 29 Apr 2024
  • 1 min read

Source: IE

India's forex reserves fell by USD 2.282 billion to USD 640.334 billion in the week ending 19th April 2024, as per the Reserve Bank of India (RBI).

  • Components of Reserves:
  • Factors Influencing Decline:
    • This decrease was primarily attributed to strategic interventions by the central bank, which deployed the reserves to defend the rupee amidst economic uncertainties and currency depreciation.
    • The RBI intervenes in the market to manage liquidity, including selling dollars to prevent sharp rupee depreciation and prevent excessive volatility in the exchange rate.
  • It can be noted that in April 2024, India's forex kitty had reached an all-time high of USD 645.6 billion.

Read more: Decline in Forex Reserves

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