India's forex reserves surge $5.4 billion to all-time high of $560.532 billion

[Dark1]

once again the forex number worship nonsense. India foreign reserves are a mix bag of currencies but calculated in usd . All currencies like yen,euro,gbp appreciated by 2-3 percent last week against dollar. Even assuming half of indian assets are in these currencies that is 5-6 billion USD increase. So nothing happened really.

If there is any real demand for indian currency then it would have appreciated instead it depreciated last week.

The Indian rupee is not freely tradable like the major currencies. So their is zero demand for it except in India.

 

[letsrock]

The Indian rupee is not freely tradable like the major currencies. So their is zero demand for it except in India.

If money (forex) is really pouring in to india then by default there is demand for rupee. Instead its just asset price appreciation in dollars probably.

 

[Dark1]

If money (forex) is really pouring in to india then by default there is demand for rupee. Instead its just asset price appreciation in dollars probably.

Demand starts when the foreign exchange gets converted to rupees by exchange of goods or services in the local market.
For eg if i invest in India from the usa but source a large part of my equipment from usa , the rupee is unaffected , as equivalent part of the FE again leaves the country.
But if i set up a building or shed in india , which requires locally procured cement , labour and steel , the demand for inr occurs.
The diamond industry boasts a lot about 30 b usd of exports from India of finished diamonds but if you look closely, the net is a few billions as they import 95 % of the raw diamonds in value . Value addition is hardly 10 %.

 

[CIA Mole]

Demand starts when the foreign exchange gets converted to rupees by exchange of goods or services in the local market.
For eg if i invest in India from the usa but source a large part of my equipment from usa , the rupee is unaffected , as equivalent part of the FE again leaves the country.
But if i set up a building or shed in india , which requires locally procured cement , labour and steel , the demand for inr occurs.
The diamond industry boasts a lot about 30 b usd of exports from India of finished diamonds but if you look closely, the net is a few billions as they import 95 % of the raw diamonds in value . Value addition is hardly 10 %.

How are the capital flight controls in india

 

[Dark1]

How are the capital flight controls in india

Not very good nor important. A individual can legally take 250000 usd annually from India for personal use

 

[letsrock]

Demand starts when the foreign exchange gets converted to rupees by exchange of goods or services in the local market.
For eg if i invest in India from the usa but source a large part of my equipment from usa , the rupee is unaffected , as equivalent part of the FE again leaves the country.
But if i set up a building or shed in india , which requires locally procured cement , labour and steel , the demand for inr occurs.
The diamond industry boasts a lot about 30 b usd of exports from India of finished diamonds but if you look closely, the net is a few billions as they import 95 % of the raw diamonds in value . Value addition is hardly 10 %.

yea so ? if Forex is increasing due to investments (that is implication of boast here) then rupee demand is increasing and it shouldnt fall. But it did so forex is simply getting inflated through currency markets not actually accruing.

 

[vi-va]

Not cow beef though, wild ox beef.

actually water buffalo

 

[CIA Mole]

@Dark1 Do you know why India inflation so high? Despite high GDP growth.

 

[Dark1]

yea so ? if Forex is increasing due to investments (that is implication of boast here) then rupee demand is increasing and it shouldnt fall. But it did so forex is simply getting inflated through currency markets not actually accruing.

Thats what i wrote a few posts back , rbi is deliberately weakening the rupee for export competitiveness, by mopping up FE.

 

[koolzberg]

Forex Reserves Surge USD 7.78 Bn to Lifetime High of USD 568.494 B

India News | Forex Reserves Surge USD 7.78 Bn to Lifetime High of USD 568.494 Bn | LatestLY

Get latest articles and stories on India at LatestLY. The country's foreign exchange reserves jumped by a massive USD 7.779 billion to touch a lifetime high of USD 568.494 billion in the week ended November 6, RBI data showed on Friday. India News | Forex Reserves Surge USD 7.78 Bn to...

www.latestly.com

 

[Chhatrapati]

I'm guessing it'll hit $600 billion in 2021.

Thats what i wrote a few posts back , rbi is deliberately weakening the rupee for export competitiveness, by mopping up FE.

I don't think RBI is messing with the forex to inflate Rupee. Right now it is good that it stays this range, maybe when the crude oil prices surge, we could be seeing RBI burning through forex to keep Rupee low. And we don't want to mess with the US Treasury by doing that, and get branded as a currency manipulator.

 

[vishwambhar]

India is all set to bounce back economically.... watch 2021 onwards......

 

[Dark1]

I'm guessing it'll hit $600 billion in 2021.

I don't think RBI is messing with the forex to inflate Rupee. Right now it is good that it stays this range, maybe when the crude oil prices surge, we could be seeing RBI burning through forex to keep Rupee low. And we don't want to mess with the US Treasury by doing that, and get branded as a currency manipulator.

The rupee has come down from 73.5 to 74.5 while our reserves are increasing. The RBI is deliberately buying dollars from the open market to weaken the rupee.

 

[Jugger]

Good job. May Pakistan learn a lesson

Sorry to say but looking at past performance it’s most likely that Pakistan will not learn anything.
If you don’t have good functional democracy then you don’t have accountability towards the people of Pakistan, hence the people in power will be corrupt and loot the country.
This is what is happening in Pakistan for the last 70 years.

One thing that shocks me is that Pakistani leaders are least interested in educating the population...... I mean this is criminal behaviour.

 

[HttpError]

We should give credit where it is due. Good Job.