India’s foreign exchange reserves fall to $584.248b
- 29 Apr 2023
India’s foreign exchange reserves fell by $2.164 billion to $584.248 billion for the week ending April 21, according to data released by the Reserve Bank of India (RBI) said.
In the previous reporting week, the overall kitty had risen by $1.657 billion to $586.412 billion.
Incidentally in October 2021, the country’s forex reserves had reached an all-time high of $645 billion.
In the period under review, the reserves fell mainly due to foreign currency assets (FCAs) shrinking by $2.146 billion to $514.489 billion.
The reserves have been declining as the Reserve Bank of India has used the funds to defend the rupee amid pressures caused mainly by global developments.
The Governor of Reserve Bank of India (RBI), Shaktikanta Das, said that a resilient future-ready bank needs to be financially, operationally and organisationally strong.
Addressing the global conference on financial resilience organised by the College of Supervisors here, Das said that in order to be resilient, a bank should have adequate capital buffers and should be able to generate earnings even in times of severe macroeconomic shocks.
“It should also have adequate liquidity to meet its obligations in various situations. Therefore, financial resilience is closely linked to a bank’s business model and strategy. The Reserve Bank has, therefore, started looking at the business models of banks more closely,” Das said.
