India foreign reserves climb to $623.2bn, GDP rate predicted at 7.3pc in 2023-24

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India foreign reserves climb to $623.2bn, GDP rate predicted at 7.3pc in 2023-24

Foreign exchange stocks in India rose for a seventh week in a row and reached a nearly 22-month high of $623.20 billion on December 29. This was shown by data released by the central bank on Friday.

The funds went up by $2.76 billion in the last week, after going up by a total of $30.12 billion over the previous six weeks.
When the Reserve Bank of India (RBI) steps in or when foreign assets stored in the reserves go up or down in value, they change the value of foreign assets.

The RBI steps into the foreign exchange market to keep the rupee from going up and down too much.

A poll of FX strategists by Reuters found that the rupee will trade in a narrow band against the US dollar this year. This is because the RBI will continue to manage the exchange rate, even though the market is betting heavily that the US will cut interest rates.

India’s reserve tranche standing in the International Monetary Fund is also part of its foreign exchange reserves.

The rupee traded against the dollar in a narrow range from 83.0950 to 83.3500 during the week that was recorded. It had small weekly losses.

This week, the value of the domestic currency hasn’t moved much. It ended the week at 83.15.

GDP GROWTH IS DRAWN IN AT 7.3PC

India predicted yearly growth of 7.3% in the fiscal year ending in March. This was the highest rate of growth of any of the major economies in the world and gave Prime Minister Narendra Modi a boost before the national elections that are set to happen before May.

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