India’s reserve of foreign currency surged by $10.470B to reach $636.095B by the week ending on March 8, as per the most recent data disclosed by the Reserve Bank of India (RBI).
The reserves of foreign currency increased for the third consecutive week, reaching its highest point in over two years.
Prior to the week ending March 8, the reserve of foreign currency had climbed by USD 6.554 billion to $625.626B, as indicated by the data.
In the latest week, India’s foremost component of foreign exchange reserves, the foreign currency assets (FCA), saw an increase of $8.21B, reaching $562.352B, according to the weekly statistical data released by the central bank.
Normally, the RBI intervenes in the market through liquidity management, including the sale of dollars, intermittently, to prevent a sharp devaluation of the rupee.
The RBI keeps a close watch on the foreign exchange markets and intervenes solely to uphold orderly market conditions by curbing excessive fluctuations in the exchange rate, without adhering to any predetermined target level or range, according to Free Press Journal.
(Finance World and The Free Press Journal have published the article under a mutual content partnership arrangement.)
