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India’s forex reserves up $4.67 billion to $590.78 billion

India’s foreign exchange reserves increased by $4.67 billion to $590.78 billion for the week ending November 3, the latest data by the Reserve Bank of India (RBI) showed on Friday, reports The Economic Times.

Previously, forex reserves saw a rise of $2.6 billion to $586.5 billion for the week ending on October 27.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) were up by $4.3 billion to $521.9 billion.

Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves surged by $200 million to $46.12 billion, while SDRs were up by $64 million to $17.98 billion.

Reserve position in the IMF increased by $16 million to $4.79 billion.

It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.