The country's foreign exchange reserves have fallen below $550 billion. This is the first time in two years that the country's foreign exchange reserves have fallen below this level. For the past seven weeks, it has continued to decline and has come down to $30 billion.
According to the data released by the Reserve Bank of India (RBI), the country's foreign exchange reserves fell by $ 5.21 billion to $ 545.65 billion for the week ending September 16. In the previous week, it was $ 550.87 billion.
The major fall in foreign exchange reserves has been due to a reduction in Foreign Currency Assets (FCA). FCA is the most important component of foreign exchange reserves. According to the RBI website, the currency of many countries is included in the FCA, which has other major currencies including US Dollar, Euro, Pound Sterling, Japanese Yen, etc. The special thing is that the value of all these is determined in US dollars. Therefore, if the value of these currencies decreases against the dollar, the value of foreign currency assets declines.
Experts believe that due to the efforts of RBI to handle the position of the rupee against the dollar, there is a big decline in the foreign exchange reserves of the country. According to RBI data, forex reserves have fallen by about $ 28.22 billion in the last seven weeks.
After the war between Russia and Ukraine, the dollar has strengthened against other currencies of the world. During the start of the war, the rupee was around 74 against the dollar, which has now come down to 80.
