FOREX RESERVES AT $604 BILLION

India's foreign exchange reserves stood at $604 billion for the week ending December 1, said Reserve Bank of India's Governor Shaktikanta Das during the bi-monthly MPC meet.

Earlier, the foreign exchange reserves increased by $2.54 billion to $597.94 billion for the week ending November 24.

It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

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2023-12-08T05:12:37Z dg43tfdfdgfd