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Forex reserves jump $75 bn since lockdown
Foreign currency assets expanded by $5.73 billion to $508.7 billion in the week ended October 9, as per RBI data.
By: ENS Economic Bureau | New Delhi |October 18, 2020 12:43:39 am
RBI data released on Friday shows that in the week ended October 9, the foreign currency assets expanded by $5.73 billion to $508.7 billion and the gold reserves were up by $113 million to $36.6 billion.
India’s foreign exchange reserves jumped by $5.86 billion in the week ended October 9 to hit a fresh high of $551.5 billion. As Covid-19 pandemic led to a sharp decline in imports of crude oil and gold and Indian companies attracted huge foreign direct investments, the forex reserves swelled by $75 billion since lockdown announcement in last week of March.
RBI data released on Friday shows that in the week ended October 9, the foreign currency assets expanded by $5.73 billion to $508.7 billion and the gold reserves were up by $113 million to $36.6 billion.
RBI data shows that FDI has stood strong despite the Covid-19 and in the five month period between April and August 2020, the foreign direct investment amounted to $24.56 billion.
Even the FPI investment has been strong this financial year. Between April and October 16, the FPIs have invested a net of $8.5 billion into Indian capital market.
Alongside this jump in FDI and FPI inflows, the reserves have been supported dip in import bill on account of ruling low crude oil prices, decline in gold and other imports on account of the Covid-19 pandemic.
While rising foreign exchange reserve provides cushion to the economy in terms of covering the import expenditure, it also provides stability to the domestic currency against the dollar. While the rupee hit a low of 76.97 against the dollar on April 21, 2020, it has recovered over the last six months and closed at 73.3 on Friday.
Between April 1 and October 9, the reserves have risen by $75 billion.
Experts say that in times of dwindling economic activity and growth, the rising forex reserves provide a lot of strength as they now cover one-year of import expenditure.
India’s foreign exchange reserves started rising significantly from September 2019. While the foreign exchange reserves stood at 428 billion in the week ended September 20, 2019, it has risen by $122 billion over the last 13-months to hit a high of $551.5 billion in the week ended October 9.
Foreign currency assets expanded by $5.73 billion to $508.7 billion in the week ended October 9, as per RBI data.
By: ENS Economic Bureau | New Delhi |October 18, 2020 12:43:39 am
RBI data released on Friday shows that in the week ended October 9, the foreign currency assets expanded by $5.73 billion to $508.7 billion and the gold reserves were up by $113 million to $36.6 billion.
India’s foreign exchange reserves jumped by $5.86 billion in the week ended October 9 to hit a fresh high of $551.5 billion. As Covid-19 pandemic led to a sharp decline in imports of crude oil and gold and Indian companies attracted huge foreign direct investments, the forex reserves swelled by $75 billion since lockdown announcement in last week of March.
RBI data released on Friday shows that in the week ended October 9, the foreign currency assets expanded by $5.73 billion to $508.7 billion and the gold reserves were up by $113 million to $36.6 billion.
RBI data shows that FDI has stood strong despite the Covid-19 and in the five month period between April and August 2020, the foreign direct investment amounted to $24.56 billion.
Even the FPI investment has been strong this financial year. Between April and October 16, the FPIs have invested a net of $8.5 billion into Indian capital market.
Alongside this jump in FDI and FPI inflows, the reserves have been supported dip in import bill on account of ruling low crude oil prices, decline in gold and other imports on account of the Covid-19 pandemic.
While rising foreign exchange reserve provides cushion to the economy in terms of covering the import expenditure, it also provides stability to the domestic currency against the dollar. While the rupee hit a low of 76.97 against the dollar on April 21, 2020, it has recovered over the last six months and closed at 73.3 on Friday.
Between April 1 and October 9, the reserves have risen by $75 billion.
Experts say that in times of dwindling economic activity and growth, the rising forex reserves provide a lot of strength as they now cover one-year of import expenditure.
India’s foreign exchange reserves started rising significantly from September 2019. While the foreign exchange reserves stood at 428 billion in the week ended September 20, 2019, it has risen by $122 billion over the last 13-months to hit a high of $551.5 billion in the week ended October 9.
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