Foreign exchange reserves: RBI MPC: India’s foreign exchange reserves at $622.5 bn as of February 2, says Governor Shaktikanta Das

Beforehand, reserves stood $616.73 billion for the week ending on January 26, in line with RBI.

It may be famous that in October 2021, the nation’s foreign exchange kitty had reached an all-time excessive of USD 645 billion. The reserves have been declining because the central financial institution deploys the kitty to defend the rupee amid pressures induced majorly by world developments.

Sometimes, the RBI, sometimes, intervenes available in the market by liquidity administration, together with by the promoting of {dollars}, with a view to stopping a steep depreciation within the rupee.

The RBI carefully screens the international trade markets and intervenes solely to take care of orderly market situations by containing extreme volatility within the trade fee, irrespective of any pre-determined goal stage or band.

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