Forex

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Forex Reserves of India

Forex Reserves of India Why in News? The country's foreign exchange reserves declined from USD 4.255 billion to USD 580.299 billion, the fall in reserves was due to a decline in the Foreign Currency Assets (FCA). What is the reason for forex rise/fall? Rise/Fall in Forex is mainly attributed to appreciation or depreciation of currencies in the basket. Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and

Foreign exchange reserves position as on 27 Jul2021

Foreign exchange reserves position as on 27 Jul 2021 India’s foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides a cushion against unforeseen external shocks Whether the reserve funds are adequate to meet the international payment obligations, the ratio of forex reserves to total external debt stood at 101.2 per cent and short-term external debt to forex reserves stood at 17.5 per cent as at end-March 2021. The ratio

FOREX RESERVE AND RUPEE’S EXCHANGE RATE

FOREX RESERVE AND RUPEE’S EXCHANGE RATE Recently, there has been a fall in the rupee’s exchange rate (nearing 80 to a US Dollar), as well as a fall in the forex reserves. The relationship between the forex reserve and rupee exchange rate is: Exchange rate: It is the price of one currency in terms of another currency. Exchange rates can be either fixed or it can be floating. Fixed exchange rates are decided by the central banks of a country. Floating exchange rates

Drop in Foreign Exchange Reserves

Drop in Foreign Exchange Reserves The Reserve Bank of India (RBI) estimates that during the past 13 months, India's foreign exchange reserves have decreased by USD 110 billion. Forex Reserves: What Are They? Foreign currency holdings, such as bonds, treasury bills, and other government securities, are known as forex reserves and are assets held in reserve by central banks. The majority of the world's reserves are held in US dollars. Components: Foreign C

Rupee's Internationalization

Rupee's Internationalization The benefits and dangers of the internationalisation of the rupee were recently emphasised by a Reserve Bank of India (RBI) deputy governor. What is rupee internationalisation? The process of internationalising the rupee entails using it more frequently in cross-border transactions. It entails encouraging the use of the rupee in import and export trade as well as other current account transactions before moving on to capital account usage.