Forex Reserve:
Reserve Bank of India (RBI) has undertaken measures to enhance forex inflows, amid Depreciation of Indian rupee.
- The rupee has depreciated by 4.1 % against the US dollar during the current financial year (2022-23) so far amid the ongoing geopolitical tensions.
- Indian Rupee has depreciated 4.1 % to 79.30 against the US dollar in the current financial year (FY 2022-23).
- Foreign Portfolio Investors (FPIs) have pulled out Rs 2.32 lakh crore in six months.
- India’s forex reserves, over the last 9 months, have decreased by USD 50 billion to USD 593.3 billion.
Forex Reserve:
- Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities.
- Most foreign exchange reserves are held in US dollars.
- Components:
- Foreign Currency Assets
- Gold reserves
- Special Drawing Rights
- Reserve Tranche Position with the International Monetary Fund (IMF).
