Forex Reserves of our country has shrunk by $15.47 billion (approx.Rs.77,000 crores), its largest ever fall, to $258.415 billion in just one week (ended 24.10.2008)
Reasons for such sharp fall are
1. Persistent selling of equity shares in our market by FIIs
2. Strengthening of US Dollar against other major currencies across the globe leading to the devaluation of such currencies in RBI’s kitty.
3. RBI intervention in the Rupee market to arrest its fall against US Dollar.
Forex Reserves are of strategic importance to any country. Countries like Argentina and Pakistan are on the verge of financial bankruptcy as their forex reserves are not sufficient to support the imports.
Reasons for such sharp fall are
1. Persistent selling of equity shares in our market by FIIs
2. Strengthening of US Dollar against other major currencies across the globe leading to the devaluation of such currencies in RBI’s kitty.
3. RBI intervention in the Rupee market to arrest its fall against US Dollar.
Forex Reserves are of strategic importance to any country. Countries like Argentina and Pakistan are on the verge of financial bankruptcy as their forex reserves are not sufficient to support the imports.
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More information!: FOREX (Foreign exchange market) :)
Thank you for visiting. I visited yours also. very useful.
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