Mumbai, November 22 (IANS). In the latest data released by the Reserve Bank of India (RBI) on Friday, it was said that as of November 15, India’s foreign exchange reserves stood at $ 657 billion. This includes gold worth $65.76 billion.
According to market analysts, India’s foreign exchange reserves were $ 675.65 billion on November 8, but dollars are being released in the market by the RBI to reduce the fluctuations in the rupee, due to which the foreign exchange reserves reduced by $ 17.7 billion. Is.
The value of SDR component in foreign exchange reserves has increased to $18.06 billion.
The country’s foreign exchange reserves have overall increased by $11.5 billion in the current financial year. India’s foreign exchange reserves had reached an all-time high of $704.885 billion at the end of September, making the country fourth globally in the size of its foreign exchange reserves after China, Japan and Switzerland. This reflects the strong economic fundamentals of the economy.
RBI uses foreign exchange reserves to control volatility in the rupee.
For example, whenever foreign investors withdraw money by selling in the Indian stock market, the demand for dollars increases. This increases pressure on the value of the rupee. In such a situation, the central bank controls the fluctuations in the rupee by increasing the supply of dollars.
Reserve Bank Deputy Governor Rabi Shankar said at a media event recently that the RBI is well prepared to handle extreme exchange rate volatility.
He said that if the rupee falls sharply then RBI will release dollars in the market to save it from freefall. This helps in maintaining stability in the Indian currency. Strong foreign exchange reserves help ease these operations and strengthen the rupee.
–IANS
ABS/ABM
