Changes in valuation led to fall in forex reserves: Shaktikanta Das

Around 67 per cent of the decline in foreign exchange (forex) reserves during the current fiscal year were because of valuation changes owing to a stronger US dollar and higher US bond yields, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. Forex reserves, which stood at USD 606.6 billion as on 2 April 2022, have declined to USD 537.5 billion as on 23 September 2022. Pointing out that India had witnessed an accretion of USD 4.6 billion in foreign exchange reserves on a balance of payments basis during April-June 2022, Das added that the current level of reserves represented strong buffers taking into account external sector vulnerabilities. He reiterated that the central bank does not target any particular level for the domestic exchange rate and only intervenes in the market to smoothen out excessive volatility.