The decline in reserves was despite an increase in foreign currency assets and reflected the fall in the value of gold held by RBI. Gold reserves were valued at $45.5 billion, down $608 million over the week.
The steady level of reserves was despite the rupee weakening to a new low of 83.34 on November 10.Special Drawing Rights with the IMF, which comprise part of reserves, amounted to $18 billion — an increase of $36 million over the week. During the current financial year, the reserves have witnessed an increase of $11.9 billion. Compared to the 12 months, reserves are higher by $45.6 billion.
RBI, meanwhile, has permitted banks to open additional current account for exports proceeds in addition to special rupee vostro accounts, providing greater operational flexibility to exporters, said report agencies. In July 2022, RBI had asked banks to make additional arrangements for export and import transactions in rupees.
“To promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in rupee, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in rupee,” it said. India has been trying to promote rupee trade following the Russia-Ukraine war. Similarly, in the reverse scenario, the amount to be paid to an Indian trader is deducted from the vostro account, and credited to the person’s regular account.