Foreign exchange reserves: India’s foreign exchange reserves declined for the third consecutive week
No matter what we say, our stock markets are still buoyed by foreign investors. When foreign investors invest money the market goes up. It reduces when money is withdrawn. Now see, on April 26, foreign investors sold heavily in the Indian stock market. Due to which BSE Sensex fell by 609 points. Its effect is also visible on the country’s foreign exchange reserves. India’s foreign exchange reserves declined by a massive $2.412 billion during the week ending April 26. Now its reserves are only 637.922 billion dollars. This is the third consecutive week that India’s foreign exchange reserves have declined. Earlier, India’s foreign exchange reserves were increasing for seven consecutive weeks. However, this is not the case in our neighboring country Pakistan. There was an increase in foreign exchange reserves during the week ending April 26.
How many dollars are left in reserves?
According to data released by the Reserve Bank of India, its foreign exchange reserves declined sharply during the week ending April 26, 2024. During this period, its reserves decreased by $ 2.412 billion to $ 637.922 billion. Earlier, in the week ending April 19, its reserves were $640.334 billion. Earlier, in the week ending April 5, 2024, its reserves had reached $648.562 billion. This is the highest level ever.
Foreign currency assets also declined
India’s foreign currency assets also declined during the week under review, according to weekly data released by the Reserve Bank. Foreign currency assets (FCAs) declined by $1.159 billion during the week ended April 26. Now its FCA reserve has reduced to $559.701 billion. It is noteworthy that foreign currency assets or foreign currency assets (FCA) form a significant part of the total foreign exchange reserves. Denominated in dollars, foreign currency assets also take into account the effects of fluctuations in non-US currencies such as the euro, pound and yen.
Gold reserves have also decreased
The country’s gold reserves also declined last week. India’s gold reserves fell by $127 million during the week ending April 26, 2024. Now the value of its gold reserves is 55.533 billion dollars.
SDR also fell
India’s special drawing rights (SDR) also fell last week, according to Reserve Bank data. The SDR declined by $90 million to $18.048 billion during the week under review. According to the data of the Reserve Bank of India, the country’s currency reserves kept with the International Monetary Fund (IMF) also declined in the week under review. The USD declined by $2 million during the week under review. Now it has come down to $4.639 billion.
Dollar reserves increased in Pakistan
Our neighboring country Pakistan is currently facing severe shortage of foreign exchange. The situation is such that there is no reserve of foreign exchange left even to buy useful goods. Therefore, importing will have to be done very carefully. But, foreign exchange reserves there increased by $ 35.5 million during the week ended April 26. Earlier, it was in the stores there during the week ending April 19. Then there remains a reserve of 13.280 billion dollars. After this week’s increase, its foreign exchange reserves have now reached $13.316 billion.
