The Intervention Of RBI i.e; Reserve Bank Of India in International Market Leads to increase in India’s foreign Currency reserve to $354.289 billion by the End of 12th of June. According to the Data released by the central bank.
This is a new high for India’s forex reserves, which rose by $1.575 billion in the reporting.
RBI does not give any reason behind the weekly movement in reserves but forex market dealers said that the central bank keeps intervening in the market to make the rupee hover around 63 against the US greenback. Which helps Indian currency not to Depreciate, And making the Indian Economy relatively Stronger.
“The RBI bought dollars from open market when the rupee gained to the 62 levels and sold them when the rupee touched 64.50 levels,” a forex dealer said requesting anonymity.
A relative week rupee makes export competitive but RBI does not allow too much volatility as a rule. The rupee closed at 63.52 a dollar Friday.
RBI data showed that foreign currency assets rose $1.569 billion to $329.582 billion. Foreign currency assets constitute the bulk of the reserves and reflect the change in the value of reserves held in other global currencies, including the euro, pound and yen due to exchange rate movements. Gold reserves remained unchanged at $19.340 billion.
In last a great achievement of Modi Government.
20 Comments. Leave new
Explained it quite well.
nice
Well explained.
very good articulation..The central bank influences the exchange rate by buying and selling foreign currencies in the international markets..Like all central banks RBI too has this responsibility so that Indian economy becomes stronger and is able to face the world economy..
Great information…..
Well done!!
Well Explained 😀 Good Work 😀
Well explained.. Great work!
Well written. An achievement for Indian Government.
very nicely explain..
Great work..
All credit goes to Mr. Raghuram Rajan,the RBI governor.
Well explained:);)
Good news for India’s financial position
Excellent work..!
There are various hidden economic aspects of it. I want that to be mentioned in detail if you can. Thank you
well written! good job
Good compilation of information 😀
Very well written 🙂
Informative☺
Basics though still well written.