RBI has done a good job in increasing forex reserves: Raghuram Rajan

Raipur: The Reserve Bank of India (RBI) has done a good job in increasing the foreign exchange reserves and the country would not face the economic problems like Sri Lanka and Pakistan, former RBI Governor Raghuram Rajan said.

We have sufficient foreign exchange reserves. RBI has done a good job in increasing the reserves. We are not having problems like Sri Lanka and Pakistan. Our foreign debts are also less, Rajan told ANI. According to the latest RBI data, India’s foreign exchange (forex) reserves stood at $571.56 billion for the week ended July 22.

During the week ended July 22, the forex reserves dropped by $1.152 billion.

According to the Reserve Bank of India’s weekly statistical supplement, the forex reserves declined during the week ended July 22 only because of the drop in foreign currency assets. All other components of the forex reserves registered gains during the week.

India’s foreign currency assets, which are the biggest component of the forex reserves, fell by $1.426 billion to $510.136 billion during the week ended July 22. The foreign currency assets had declined by $6.527 billion during the week ended July 15 and by $6.656 billion in the previous week.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK’s Pound Sterling and Japanese Yen held in the foreign exchange reserves.

There was increase in other components of the forex reserves. The value of gold reserves rose by $145 million to $38.502 billion during the week ended July 22.

The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund rose by $106 million to $17.963 billion during the week under review, the RBI data showed.

India’s reserve position in the International Monetary Fund (IMF) rose by $23 million to $4.96 billion during the week ended July 22, as per the RBI Weekly Statistical Supplement.

On inflation, Rajan said the hike in policy rates by the Reserve Bank of India would help in reducing the inflationary pressure.

At present, there is inflation all over the world. RBI is increasing interest rate which will help in reducing inflation. Most inflation is in food and fuel. As we can see food inflation is coming down in world & will decrease in India also, he said.