India’s foreign exchange reserves in nominal terms (which includes valuation effects) rose by $16.6 billion during April-June 2023, mainly driven by strong Foreign Institutional Investment (FII) flows, according to the figures released by the Reserve Bank of India, yesterday. Forex reserves witnessed a decline of $18.2 billion during April- June quarter of last year.
Excluding valuation effects, foreign exchange reserves increased by $ 24.4 billion during April-June 2023 as compared with an accretion of $ 4.6 billion during April-June 2022.
Total foreign investment, which included Foreign Direct Investment (FDI) and portfolio investment, increased by $20.8 billion during April-June 2023. NRI deposit during the quarter rose $2.2 billion during the quarter compared $0.2 billion increase seen in the same quarter in the previous year.
The valuation loss, primarily reflecting the appreciation of the US dollar against major currencies, amounted to $ 7.8 billion during April-June 2023 as compared with a valuation loss of $ 22.7 billion during April-June 2022.