Business News: The retail inflation data released on Friday in India may have disappointed a bit, but in the meantime the Reserve Bank of India (RBI) has reduced the concerns. RBI said that till September 5, India's foreign mart reserves have increased by $ 4.03 billion to $ 698.26 billion. Earlier, till the week ending on August 29, it was $ 694.23 billion.
On the other hand, government data showed that retail inflation in August rose to 2.07 percent as compared to 1.61 percent in July. These figures have come at a time when India is facing a massive 50 percent tariff imposed by the US.
Gold reserve increased so much
According to RBI data, foreign currency resources (FCA), which are the biggest part of the reserves, rose by $540 million to $584.47 billion. Apart from the dollar, these resources moreover include other currencies like Euro, Pound and Yen. Not only this, gold reserves rose by $3.53 billion to $90.29 billion this week. Special Drawing Rights (SDR) fell by $34 million to $18.74 billion. India's reserve position in the IMF increased by $2 million to $4.75 billion.
Why does RBI buy and sell dollars?
RBI intervenes in the foreign mart market when needed. For this, it sells or buys dollars so that the sharp fluctuations in the rupee can be stopped. Officials say that this intervention is not washed-up to fix any particular rate, but to alimony the market stable.
The figures come every week
In India, the data of foreign mart reserves is released every week. This data is released by RBI every Friday evening. It contains the data till the previous week. That is, the data comes with a wait of one week. It contains information well-nigh four things, such as foreign mart assets, gold reserves, special drawing rights (SDRs) and reserve position kept in IMF.
