India’s forex reserves hit a new low, RBI forced to spend $118 billion to defend INR

Sakshi Education

For the week ending October 14, India’s foreign exchange reserves (Forex Reserves) further declined to a level not seen in more than two years as the country’s central bank, Reserve Bank of India (RBI) continued to defend the rupee’s decline while disregarding the serious threat posed by dwindling foreign exchange reserves
According to information made public by the Reserve Bank of India, the third largest economy in Asia’s foreign exchange reserves decreased by $3.85 billion to $524.52 billion for the week ending October 21.
The spot foreign exchange reserves have decreased from their peak of $642.45 billion on September 3 of last year, which set a record, and from a low of $607 billion at the end of March.
The currency reserves have now run out for 11 of the last 12 weeks. For the week ending October 7, when increases in gold reserves had increased the forex reserves by merely $204 million, it was the only time it was fortunate.

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