RBI: Foreign currency assets decline $19 billion in 3 months
The capital market also witnessed outflows of around `60,000 crore since April this year. (Express Photo by Pradip Das)
MUMBAI: India’s foreign currency assets fell by around $19 billion since April this year in the wake of capital outflows and intervention by the Reserve Bank of India to arrest the decline in the rupee’s value against the dollar. During the week ended June 29, foreign currency assets, a major component of the overall reserves, decreased by $1.781 billion to $380.718 billion, according to Reserve Bank data. As at end-March 2018, the total foreign currency assets were $ 399.44 billion, indicating a decline of $ 19 billion in three months. The RBI had sold dollars to stabilize the rupee which had fallen below 69 level last week. The capital market also witnessed outflows of around Rs 60,000 crore since April this year.
Overall forex reserves which had touched a record high of $426.028 billion in the week ended April 13, 2018 have now fallen $ 20 billion. Foreign exchange reserves declined by $1.757 billion to $406.058 billion in the week ended June 29 owing to fall in foreign currency assets, RBI data showed. In the previous week, reserves had dipped by $2.25 billion to $407.81 billion.
Credit: indianexpress.com