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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI Report: Sources of Variation in India's Foreign Exchange Reserves (April-June 2023)

28-Sep-2023 | Press Release: 2023-2024/1009

Reserve Bank of India (RBI) has released a detailed report on the sources of variation in foreign exchange reserves during April-June 2023. The key highlights are: 1. Increase in Foreign Exchange Reserves: During April-June 2023, India experienced a notable increase in its foreign exchange reserves. 2. Breakdown of Sources: The sources contributing to this increase are outlined in Table 1. 3. Balance of Payments Basis: Excluding valuation effects, foreign exchange reserves saw a substantial increase of US$ 24.4 billion in April-June 2023, compared to an accretion of US$ 4.6 billion during the same period in 2022. 4. Nominal Terms: When considering nominal terms (including valuation effects), foreign exchange reserves saw a rise of US$ 16.6 billion in April-June 2023. This is in stark contrast to the decrease of US$ 18.2 billion observed in the corresponding period of the previous year (Table 2). 5. Valuation Loss: A significant factor contributing to these variations was the valuation loss. This was primarily attributed to the appreciation of the US dollar against major currencies. In April-June 2023, the valuation loss was recorded at US$ 7.8 billion. In comparison, April-June 2022 saw a valuation loss of US$ 22.7 billion.

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