Suspense Crime Sach Ka Dam
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Ahmedabad: The Reserve Bank of India has sold foreign exchange worth a total of $ 213 billion in the financial year 2022-23. This figure is 120 per cent higher than in 2022, according to data released by the central bank in its monthly bulletin on May 22.
The RBI will sell significant dollars in 2022-23 in an attempt 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 volatility in financial markets due to the war, the rupee has been under considerable pressure due to a sharp rise in import bills due to a rise in global commodity prices in 2022-23.
In monthly figures, the central bank bought foreign currency worth $750 million on a net basis in March. It sold $6.16 billion as against total purchases of $6.91 billion in the previous month. Moreover, the RBI’s outstanding position in the forward market at the end of 2022-23 stood at $23.6 billion, according to the RBI bulletin. This figure stood at $20.47 billion at the end of February. Most of the RBI’s forward movement is in the ‘above 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 19 May, the Central Board of Directors of RBI declared a dividend of Rs. Rs 87,416 crore was sanctioned for the transfer.
This is about Rs 40,000 crore more than the Rs 48,000 crore the government got. This dividend transferred by RBI to the government in 2021-22 is Rs. 30,307 crore is almost three times more.
had to intervene 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 responsibility of the central bank to ensure that the exchange rate remains stable. Last year there was a massive outflow of dollars due to the Russia-Ukraine war. RBI intervention instills confidence in domestic and international investors. The foreign exchange reserves saw a decline of $524 billion last year due to the fall in the value of the dollar. However, foreign exchange reserves are currently strong, and have come close to $600 billion. RBI tries to maintain strength in foreign exchange reserves.
