India’s foreign exchange (Forex) reserves jumped by $1.853 billion to $595.051 billion in the week ended on June 30, the Reserve Bank of India (RBI) said on Friday. According to a report by PTI, the overall reserve had dropped by $2.901 billion to $593.198 billion in the previous reporting week.
In October 2021, the country’s forex reserve had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. For the week ended on June 30, the foreign currency assets, a major component of the reserves, increased by $2.539 billion to $527.979 billion, according to the Weekly Statistical Supplement released by the RBI on Friday.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves dropped by $472 million to $43.832 billion, the RBI said.
The Special Drawing Rights (SDRs) were down by $95 million to $18.239 billion, the central bank said. The country’s reserve position with the IMF was down by $118 million to $5.002 billion in the reporting week, according to the central bank.
Meanwhile, the 33rd Conference of the State Finance Secretaries was held in Mumbai Thursday.The theme of the Conference was ‘Debt Sustainability: States’ Perspective’ and was attended by the Finance Secretaries of 23 States and one Union Territory
and officials from the Ministry of Finance, Government of India, Controller General of Accounts and the Comptroller and Auditor General of India. Governor, Reserve Bank of India inaugurated the Conference.
Addressing the Conference, the Governor highlighted the importance of debt sustainability for ensuring long-term fiscal health of the states. He emphasized on the need for the states to focus on fiscal consolidation, improving quality of expenditure and other issues related to the fiscal health of states such as contingent liabilities/guarantees, etc.
The meeting reviewed, inter alia, market borrowings by the states, administration of the Consolidated Sinking Fund and Guarantee Redemption Fund, issues relating to state government guarantees, short-term financial accommodation to the states from the Reserve Bank, etc.