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India’s forex reserves fall $4.5 billion, worst weekly drop in a year

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3 years ago

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India’s forex reserves fall .5 billion, worst weekly drop in a year

The country’s foreign exchange reserves fell sharply in the week to January 28, 2022, due to the revaluation of foreign exchange assets.
According to the latest data from the Reserve Bank of India (RBI), total reserves fell by $4.5 billion this week, mainly due to a drop of $3.5 billion in foreign currency assets. Gold reserves fell by 844 million in a week. The Reserve Bank of India held 743.84 metric tons of gold at the end of September 2021. The Bank of England and the Bank for International Settlements (BIS) held 451.54 tonnes of gold overseas and 292.3 tonnes domestically.

It was the biggest drop since foreign reserves fell by $6.2 billion in the week ended Feb. 5, 2021.

Total reserves stood at $629.8 billion as of the reporting weekend. For the week ended September 3, 2021, foreign exchange reserves reached a level of $642.45 billion, down nearly $12 billion from an all-time high.
While both the US dollar and the euro are intervention currencies and foreign currency assets (FCAs) are maintained in the major currencies, foreign exchange reserves are denominated and expressed in US dollars. Changes in FCA are mainly due to changes in foreign exchange buying and selling by the Reserve Bank of India, revenue from foreign exchange reserves deployment, external aid revenue from the central government, and revaluation of assets.
According to the Reserve Bank of India, foreign exchange reserves rose steadily between March and September last year. However, there has been a decline since then.
With crude prices above $90 a barrel, the rupee is under pressure as higher oil prices will mean bigger import bills. The Reserve Bank of India intervenes in currency markets to reduce volatility.
India imports more than 80% of its crude oil needs. Economists estimate that a 10% increase in oil prices would increase the current account deficit by $15 billion.
India’s crude oil imports rose 119.2% year-on-year to $118.3 billion in April-December 2021, up from $54 billion in the same period in FY21. At this rate, India’s oil import bill is expected to be around $158 billion in FY22, just one notch below the all-time high of $165 billion in FY2014.

Complete News Source : Business Standard

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Published

4 days ago

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November 21, 2024

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Following US SEC charges of bribery against Gautam Adani, opposition parties criticise PM Narendra Modi and call for a JPC investigation.

As billionaire Gautam Adani faces charges in the US for alleged bribery and fraud, the Opposition on Thursday intensified its attack on the Centre over its alleged links with the Adani Group.

Gautam Adani has been charged in the US with allegedly paying $250 million in bribes to Indian officials between 2020 and 2024 to secure favourable terms for solar energy contracts. The scheme, prosecutors said, could have earned Adani’s group over $25 billion in profits.

Congress demands JPC probe

Reacting to the charges, the Congress called for a Joint Parliamentary Committee (JPC) probe into alleged scams involving Adani’s conglomerate. The party also demanded the appointment of a “new and credible” Sebi chief to investigate Adani’s financial dealings and compliance with securities laws.

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Congress leader Jairam Ramesh said the US Securities and Exchange Commission’s (SEC) actions highlight the failure of Indian institutions to investigate the group. “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams,” Ramesh wrote on X.

He accused Prime Minister Narendra Modi of shielding Adani and claimed Congress’s “Hum Adani Ke Hain Kaun” (HAHK) series had exposed the businessman’s alleged fraud and his ties with the PM.

The fact that it has taken a foreign jurisdiction to properly investigate Adani only shows how Indian institutions have been captured by the BJP, and how decades of institutional development have been undone by greedy and power hungry leaders, the Congress leader said in another post.

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“All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister,” Ramesh charged.

Other Oppn leaders join attack

Other opposition leaders joined the attack. Trinamool Congress MP Saket Gokhale questioned the BJP’s involvement in Adani’s dealings and demanded an independent judicial probe.

Aam Aadmi Party leader Sanjay Singh accused PM Modi of allowing Adani to tarnish India’s global reputation.

ALSO READ- Adani Group shares plunge after US SEC charges, Adani Green down 16%

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Adani stocks latest updates

The allegations rattled markets, with Adani Group stocks plunging. Adani Enterprises fell 20 per cent in pre-open trade, while shares of Adani Ports, Adani Green, Adani Power, and others dropped between 7 per cent and 18 per cent.

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