Forex Reserves – India must now put its massive forex reserves to better use
forex reserves During the week, India’s forex reserves crossed the psychological $500 billion mark. India has come a long way from having just 15 days of imports as forex reserves in 1991 when she had to pledge gold to the Bank of England. Now there is a problem of plenty! Forex reserves ranking For the first time since the forex chest began to be recorded, India entered the top-5 in terms of forex reserves. India ranks behind China, Japan, Switzerland and Russia and has overtaken Taiwan, Hong Kong and Saudi Arabia. KSA, at one point of time held over $750 billion in its forex reserves but 5 years of weak oil prices meant that Saudi Arabia has been forced to draw heavily on its forex reserves despite cutting down on many of its welfare outlays. India can hope to overtake Russia soon. China leads the rankings with $3.5 trillion in reserves. Why are reserves building up? There are multiple reasons why the forex reserves are building up. Firstly, the sharp fall in oil import bill has brought down the trade deficit by more than 50% on a monthly basis. Secondly, the forex remittances from NRIs have been extremely robust with most of the world markets offering either zero or negative rates of returns. Lastly, RBI intervention in the forex markets has reduced substantially and that has also helped forex reserves build-up. Know more: http://blog.tradeplusonline.com/stock-market-updates/forex-reserves-india-must-now-put-its-massive-forex-reserves-to-better-use/
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Brexit: As referendum draws near, here's why India is on its toes
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Brexit: As referendum draws near, here's why India is on its toes. The D-day has arrived - the day Britons will decide whether to stay on or leavethe European Union. A victory for "out" could unleash turmoil on financial markets. Indeed a decision to exit will have a deep impact on the global economy and in turn on India. According to the consultancy firm, key sectors attracting Indian investment include healthcare, agritech,food, and drink. IANS, meanwhile, says that Britain ranks 12th in terms of India's bilateral trade with individual countries. Access to European markets is therefore a key driver for Indian companies coming to the UK. So clearly, India will see a major impact, if the UK indeed decides to leave the EU. What is required in such a scenario is forex reserves. The finance ministry said on Wednesday the country has sufficient foreign exchange reserves to handle any impact. The RBI's intervention by selling dollars had averted a deeper decline. In case of BREXIT later this week, it would likely allow any US Dollar strength to play out. 3/USD today," Bank of America Merill Lynch said on Monday. "An initial analysis indicates that the impact on India's technology sector may be mixed; clearly negative in the short term and harder to discern in the longer term with either scenario having some positive and some negative points," Nasscom said. With the pound expected to fall 20 percent in case of a Brexit, Indian companies with sizeable presence in the UK will have to bear the brunt. Apart from these, the Indian Depository Receipts of StanChart are also likely to get impacted negatively. As Deloitte explains in the note, one of the key factors, among others, that attracts Indian enterprises and their investment into the UK is the gateway that it provides to the EU. The domestic capital market has a robust surveillance and risk management framework in place and it has been beefed up to deal with any eventuality emanating from the 'Brexit' referendum, a senior official said. IfIamnotworkingproperly,pleasecontactBlackbird-007orsendamessagetomoderatorsofIndiaSpeaks.
RBI’s intervention in the forex market to check rupee appreciation till now has been $38.5 billion (approx. Rs 2.50 Lak crores). This neutralised the increase in currency in circulation of Rs 2.3 lakh crore, as depositors withdrew currency from the banking system due to Covid-related shutdown of business. Our balance of payments estimates place FY21 forex intervention at USD 45 billion, of which the RBI has already done USD 25.5 billion so far. In FY2020, the RBI defended the rupee with a USD 45 USD/INR trades around 74.77 on Thursday following the decline this week. Economists at TD Securities expect RBI FX intervention to lessen, with INR likely to trade with a near-term firmer bias. Key quotes “RBI will continue to ease policy, with at least 50bp of further cuts likely in this cycle. Rbi intervention in foreign exchange market methodology , mechanism , forex market structure . Rbi intervention in foreign exchange market methodology , mechanism , forex market structure IntroductionThe Reserve Bank of India (RBI) is the nation’s central bank. Since 1935, when it began itsoperations, it has stood at the centre of India The RBI bought a net $4.4 billion from the spot dollar market in May, after it sold $5.2 billion in March-April, data from the central bank showed. The RBI’s intervention helped the rupee gain 29 paise against the dollar during the month. The RBI also purchased an additional $219 million in May from the forward market, the data showed.
Professional Forex Trading Course Lesson 1 By Adam Khoo - Duration: ... TYBCOM - Economics - RBI's Intervention and Foreign Exchange Rate Management - Demo - Duration: 5:38. Hello Friends, In this video i have explained Forex Market of Finance part. As a working profession in Investment Banking i have crack three exam simultaneously that is CFA, RBI, UPSC. I had a new ... This concept is a introductory analysis of how does india's central bank the RBI plays an important intervening role from time to time to stabilise the structural fluctuations that occur in the ... How a central bank could use foreign currency reserves to keep its own currency from devaluing Watch the next lesson: https://www.khanacademy.org/economics-f... @ Members ~ Treasury Consulting LLP Pleased to present video titled - " Reserve Bank of India (RBI) Sterilization Operations - Depreciating Rupee ". Video would be covering all aspects of Full ...