Foreign exchange reserves are continuously declining. The weakness of the rupee is directly impacting Forex. The Reserve Bank has to spend more dollars to stop the fall of the rupee. The country’s foreign exchange reserves declined by $8.48 billion to $644.39 billion on December 20. Due to this, in the last week the country’s foreign exchange reserves had decreased by $ 1.99 billion to $ 652.87 billion. This was the lowest level in six months. Reserve Bank of India has given this information by issuing a press release.
The entire credit for this fall can be given to the strong intervention of RBI in the currency market to support the rupee amid a strong dollar. The Reserve Bank generally sells dollars from its reserves when the rupee tries to curb volatility in the currency market.
The rupee weakened by 53 paise to hit a record low of 85.79 against the US dollar on December 27, its biggest one-day fall since February 2023. However, according to experts and economists, the worst situation is not over for the rupee. Uncertainty is expected to increase in 2025, as new US President Donald Trump has threatened tariffs and adopted inflationary policies.
reserve stock of india
These assets also include the impact of movements in non-US currencies such as the Euro, Pound and Yen. In this week, gold reserves decreased by $ 2.33 billion to $ 65.73 billion. SDR declined by $112 million to $17.88 billion. Apart from this, India’s reserves with the International Monetary Fund also decreased by $ 23 million to $ 4.22 billion. Due to this, in the last week the country’s foreign exchange reserves had decreased by $ 1.99 billion to $ 652.87 billion. At the end of September, foreign exchange reserves had increased to the highest level of $ 704.88 billion. At the same time, SDR decreased by $ 112 million to $ 17.88 billion.