RBI Reports Valuation Loss Of $7.8 Billion In Forex Reserves In June Quarter

Published on Sep 28, 2023 14:14

The Reserve Bank of India (RBI) has released balance of payments (BoP) data for April-June 2023 and elaborated on the sources of variation in foreign exchange reserves during the same period. During April-June 2023, there was an increase in the foreign exchange reserves, says the central bank. On a BoP basis (i.e., excluding valuation effects) foreign exchange reserves increased by US$ 24.4 billion during April-June 2023 as compared with an accretion of US$ 4.6 billion during April-June 2022. Foreign exchange reserves in nominal terms (including valuation effects) increased by US$ 16.6 billion during April-June 2023 as against a decrease of US$ 18.2 billion in the corresponding period of the preceding year. The valuation loss, primarily reflecting the appreciation of the US dollar against major currencies, amounted to US$ 7.8 billion during April-June 2023 as compared with a valuation loss of US$ 22.7 billion during April-June 2022.