Modi government on the economic front, India's foreign exchange reserves increased by five billion dollars in a week

On the economic front, there is good news for the Modi government at the Centre. In fact, according to the latest data released by the Reserve Bank of India (RBI) on Friday, the country's foreign exchange reserves increased by $ 5.077 billion to $ 595.397 billion in the week ending November 17. Earlier, foreign exchange reserves had fallen by $ 462 million to $ 590.32 billion during the week ending November 10.

In the week ended November 17, gold reserves increased by $527 million to $46.04 billion, while SDR increased by $120 million to $18.13 billion. Reserves in the IMF increased by $ 42 million to $ 4.83 billion. The increase in foreign exchange reserves is good news, as the RBI uses it to stabilize the rupee when it becomes volatile.

RBI intervenes in the spot and future currency markets by selling more dollars to prevent the rupee from coming under pressure. Any sharp decline in the country's foreign exchange reserves reduces the scope for the RBI to intervene in the market to stabilize the rupee.

The central bank deployed capital reserves to protect the rupee amid pressure from global growth since last year. This has affected the stock. Non-US units such as the euro, pound, and yen held in foreign exchange reserves have also been affected.