RBI sold $213 billion worth of forex to curb sharp volatility in the rupee

-


Reserve Bank grounds to prevent rupee depreciation

Forced to sell 120% more gold in 2022-23 than last year

AHMEDABAD: The Reserve Bank of India has sold a total of $213 billion worth of foreign currency in the financial year 2022-23. According to the figures released by the central bank in its monthly bulletin on May 22, this figure is 120 percent higher than in 2022.

The RBI sold significant dollars in 2022-23 in an effort to reduce volatility in the rupee exchange rate following the turmoil in global financial markets following Russia's invasion of Ukraine in February 2022. Apart from instability in financial markets due to the war, the rupee has been under significant pressure due to a sharp rise in import bills due to rising global commodity prices in 2022-23.

Talking about the monthly figures, the Central Bank bought a net of $750 million worth of foreign currency in March. It sold $6.16 billion against a total purchase of $6.91 billion last month. Further, according to the RBI Bulletin, RBI's outstanding position in the forward market stood at $23.6 billion at the end of 2022-23. At the end of February this figure was 20.47 billion dollars. Most of RBI's forward activity is in the 'more than 3 months and up to 1 year' bucket.

Economists peg the historical average acquisition cost of RBI's foreign currency holdings at around Rs 62-65 per dollar. Meanwhile, the average monthly exchange rate of the rupee against the US dollar in 2022-23 ranged from 76.2 to 82.7.

On May 19, the Central Board of Directors of RBI declared a dividend of Rs. 87,416 crore was approved for transfer.

This is about Rs 40,000 crore more than the Rs 48,000 crore received by the government. This dividend transferred by RBI to the government in 2021-22 is Rs. 30,307 crore is almost three times as much.

Intervention had to be done to stabilize the rupee

  RBI Governor Shaktikanta Das defended the RBI's decision to intervene in the forex market last year to stabilize the rupee. It is the central bank's responsibility to ensure that the exchange rate remains stable. There was a huge outflow of dollars last year due to the Russia-Ukraine war. Due to the intervention of the Reserve Bank, confidence is created among domestic and international investors. The forex reserves saw a decline to $524 billion last year due to the drop in dollar value. However, forex reserves are currently strong, and have come close to $600 billion. RBI endeavors to maintain strength in forex reserves.

Comments

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja
Read more

The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-
Image
MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India. Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors. A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available. About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only se
Read more