Team Blitz India
NEW DELHI: India’s foreign exchange reservesrose for a sixth straight week to hit a lifetime high of $645.58 billion as of March. 29, RBI data revealed on April 5.
The reserves rose by $2.95 billion in the reporting week, after having risen by a total of $26.5 billion in the previous five weeks.
The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.
Changes in foreign currency assets are caused by the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves.
Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.
Despite India’s strong growth and inflows into equity and debt markets, the central bank has been absorbing inflows to build reserves.
