India Forex Reserve: Foreign exchange reserves fall for the seventh consecutive week, at the minimum level of two years
The country's foreign exchange reserves have fallen below $550 billion. This is the seventh consecutive week that it has seen a decline. This fall has come at a time when RBI is trying to handle the value of rupee against the dollar.
Abhilasha 
According to the data released by the Reserve Bank of India (RBI), the country's foreign exchange reserves fell by $ 5.21 billion to $ 545.65 billion for the week ending September 16. In the previous week, it was $ 550.87 billion.
Major fall in forex assets
The major fall in foreign exchange reserves has been due to reduction in Foreign Currency Assets (FCA). FCA is the most important component of foreign exchange reserves. According to the RBI website, the currency of many countries is included in the FCA, which has other major currencies including US Dollar, Euro, Pound Sterling, Japanese Yen etc. The special thing is that the value of all these is determined in US dollars. Therefore, if the value of these currencies decreases against the dollar, the value of foreign currency assets declines.
Trying to handle the position of Rs.
Experts believe that due to the efforts of RBI to handle the position of rupee against the dollar, there is a big decline in the foreign exchange reserves of the country. According to RBI data, the foreign exchange reserves have fallen by about $ 28.22 billion in the last seven weeks.
Rupee weakens against dollar
After the war between Russia and Ukraine, the dollar has strengthened against other currencies of the world. During the start of the war, the rupee was around 74 against the dollar, which has now come down to 80.
