Forex Reserve

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).

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