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Table of Contents: Masthead Sticky<ul class="summary-list"><li><keyword id="6358355" type="UNKNOWN" weightage="60" keywordseo="forex" source="Orion">Forex</keyword> is a global marketplace for trading one currency for another.</li><li>Central banks are also involved in the forex market, buying and selling currencies in order to push the value of their native currency either higher or lower.</li><li>The forex <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword> offer investors liquidity and 24/7 trading - but they're highly volatile.</li></ul>If you've already begun your investing journey, the <keyword id="11895235" type="UNKNOWN" weightage="60" keywordseo="stock-market" source="Orion">stock market</keyword> is a familiar place. But if you're looking to expand your portfolio and see how else you can strengthen your portfolio, there's foreign exchange, or forex.Forex involves trading one currency for another. For example, a person could exchange the US dollar for the Japanese Yen. Forex offers deep liquidity and 24/7 trading, so investors have ample opportunities to get involved. <h2>Understanding forex </h2>The forex market is a global electronic network of banks, brokers, hedge funds, and other traders. This market is where one currency is traded against the other in an effort to turn a profit. Central banks are also involved in the forex market, where they're responsible for maintaining the value of their countries' currency. This value is represented as the exchange rate by which it will trade on the open market. Market participants can trade in the spot market and also buy and sell <a href="https://www.businessinsider.com/derivative" target="_blank" rel="noopener">derivatives</a>. As a result, they can trade <a href="https://www.businessinsider.com/what-are-futures" target="_blank" rel="noopener">futures</a>, forwards, and swaps.Quick tip: The spot market is a financial market where investors can trade currencies, commodities, and securities instantly.Investors trade forex in pairs, which list the base currency first and the quote currency second. For example, if someone trades the JPY/USD, the Japanese Yen is the base currency, and the US dollar is the quote currency.<div type="image" title="Forex pricing: Base and Quote currency example using JPY and USD" height="774" width="1668" msid="86630168" hostid="261"></div>Investors who are interested in forex have the ability to trade several different currency pairs: major pairs, minor pairs, exotic pairs, and regional pairs. <ul><li>The major pairs involve the US dollar, and include USD/JPY, EUR/USD, USD/CHF, and EUR/USD. These four currency pairs account for 80% - a strong majority - of forex trading, according to figures provided by <a href="https://www.ig.com/us/forex/what-is-forex-and-how-does-it-work" target="_blank" rel="noopener">IG</a>. </li><li>The minor pairs, which consist of other major currencies, include GBP/JPY, EUR/GBP, and EUR/CHF. </li><li>There are exotic pairs, which involve a major currency combined with a minor currency, such as EUR/CZK, USD/PLN, and GBP/MXN. </li><li>Then there are regional pairs, which are named for different geographic regions, for example Australasia or Scandinavia. AUD/SGD, EUR/NOK, and AUD/NZD all count as regional pairs. </li></ul>The world's most-traded currency, by far, is the US dollar; it experiences more than $5 trillion worth of trading volume per day, according to <a href="https://stats.bis.org/statx/srs/table/d11.3" target="_blank" rel="noopener">figures</a> from the Bank for International Settlement (BIS). The data from BIS also reveals the Euro as a not-so-close second, with more than $2.1 trillion in daily trading volume, and the Japanese Yen and pound sterling are the third- and fourth-largest currencies by average daily trading volume, at $1.1 trillion and $844 billion, respectively. <h3>The forex market </h3>This global market has two tiers: the interbank market and the <a href="https://www.businessinsider.com/what-is-otc" target="_blank" rel="noopener">over-the-counter (OTC) market</a>. The interbank market involves institutions that exchange currencies with each other and have the ability to set exchange rates because of the magnitude of their trades. The OTC market is different in that it involves transactions that are made electronically instead of going through a third party like a broker or exchange. <h2>The origins of forex</h2>Different narratives have been provided as to when the forex markets first originated. Some have asserted that forex existed thousands of years ago. The barter system, in which people would trade goods for other goods, first <a href="https://www.dailyfx.com/education/beginner/history-of-forex.html" target="_blank" rel="noopener">came into existence</a> during the time of Mesopotamia tribes. As this system progressed, merchants would travel between different regions on ships in order to trade goods like spices and salt for other items, creating the first foreign exchange. <h2>How forex trading works</h2>Forex trading involves trading currency pairs in an effort to hedge or speculate. For retail investors, the process of forex trading involves opening a <a href="https://www.businessinsider.com/what-is-a-brokerage-account" target="_blank" rel="noopener">brokerage account</a>, funding it, and then trading. Once set up, if an investor thinks that the US dollar will rise compared to the Japanese Yen, they could buy the US dollar and sell the Yen. However, if that same investor thinks the Euro will decline relative to the US dollar, they can sell the EUR/USD by opening a sell position for one lot of that pair. Either way, if their bet is accurate, they will make a profit. However, if their prediction isn't accurate, they will suffer a loss. Investors trade currencies in lots, which are simply the number of units of those currencies. There are standard, mini, micro, and nano lots, which consist of 100,000, 10,000, 1,000, and 100 currency units, respectively. Traders frequently aim to capitalize on small fluctuations in exchange rates, which are measured in pips, which represent one one-hundredth of 1 percentage point. Note: Some forex traders use the term "greenback," which is a slang term that refers to the US dollar.<a href="https://www.businessinsider.com/hedge-fund" target="_blank" rel="noopener">Hedge funds</a> also use brokers. "[They] generally use institutional brokers, but they often also use the same brokers as retail investors - although they will almost always negotiate volume discounts/better terms," says Tim Enneking, managing director of hedge fund manager <a href="https://www.digital-capital-management.com/" target="_blank" rel="noopener">Digital Capital Management</a>. Quick tip: Banks trade significant amounts of currencies through the interbank market. These financial institutions make transactions that are frequently worth between $10 million and $100 million. Banks have currency desks, which communicate with each other constantly, and this helps them to ensure that exchange rates are consistent. <h3>The pros and cons of forex trading</h3>Forex offers many pros, including deep liquidity, 24-hour-a-day access, and access to <a href="https://www.businessinsider.com/leverage" target="_blank" rel="noopener">leverage</a>, which can help provide stronger returns. Further, some forex brokers advertise themselves as offering no-commission trading. Another major draw of trading forex is the small amount of capital a person needs to get started. "You can easily trade using leverage which means that you need relatively little capital to be able to trade forex," says Julius de Kempenaer, senior technical analyst at <a href="https://stockcharts.com/" target="_blank" rel="noopener">StockCharts.com</a>."It is no problem to day trade or scalp as the forex market is a lot less regulated than the stock/bond market." Scalping refers to making trades that profit from small changes in the value of forex pairs.But there are drawbacks as well - such as leverage, which can be a double-edged sword in that it can amplify both gains and losses. Further, Enneking notes that the forex market has low <a href="https://www.businessinsider.com/what-is-volatility" target="_blank" rel="noopener">volatility</a>. "Without leverage, it's a difficult market to make real money in," Enneking says. Retail traders can face substantial risks because of easy access to leverage and lack of understanding of how it all works.<h3>Forex example </h3>One currency pair a person might want to trade is the EUR/USD. If this particular pair is trading for 1.15 pips, and they think the exchange rate will increase in value, they could purchase 100,000 Euros worth of this currency pair. If it goes up to, for example, 1.20, they would experience a gain. You could use the following equation to calculate your profit: €100,000 x (1.2000-1.1500) = $5,000After that, they could take determine their profit in euros using this formula: $5,000/1.20 = €4,166.67<h2>The financial takeaway</h2>The forex market provides ample opportunities for traders, allowing them significant access to leverage, the ability to trade 24/7, and the possibility of getting started with a small capital outlay. There are plenty of online brokers they can use, providing them with a wealth of options. However, they should keep in mind that while there is the potential for gains, there are also significant risks involved. For starters, leverage can amplify losses, and many retail traders who want to take part will find themselves competing with professional traders working for financial institutions. "Neophytes have their work cut out for them," says Enneking. "There are a plethora of long-time, highly skilled, very knowledgeable players in the space. You have a long learning curve to climb to feel comfortable and become successful in the sector."<a data-type="60ff29d5286456579a35d093">Beta can help you determine how much your portfolio will swing when the market moves</a><a data-type="606c79d8fce00e68545ceee6">5 common behavioral biases and how they lead investors to make bad decisions</a><a data-type="6143817b5b926a5dd93d7aa5">Purchase power is a measure of what your money can buy - here's how it can impact your finances</a><a data-type="5fc809a6f45c2344c12b9ab6">Trading and investing are two approaches to playing the stock market that bring their own benefits and risks</a>

What is Forex? Understanding the market for exchanging foreign currencies

Mumbai, Reserve Bank Governor <keyword id="19913110" type="General" weightage="20" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword> on Friday said India has been building up <keyword id="20344434" type="General" weightage="20" keywordseo="gold-reserves" source="keywords">gold reserves</keyword> as part of its forex deployment. "We are building up gold reserves that is a part of our reserve deployment," Das told reporters at the customary post-policy review press conference here. He did not give any specifics on the quantum of gold buys, but pointed to the official data which shows an increase in the value of gold reserves. As per official data, the value of gold in the <keyword id="20344433" type="General" weightage="20" keywordseo="forex-reserves" source="keywords">forex reserves</keyword> stood at USD 51.487 billion as on March 22, which is USD 6.287 billion higher than the value as at end-March 2023. As per a recent news report, RBI bought 8.7 tonne of gold in January alone which is the highest in two years. The <keyword id="19894998" type="General" weightage="20" keywordseo="central-bank" source="keywords">central bank</keyword>'s gold holdings had touched 812.3 tonne at the end of January from 803.58 tonne in the preceding month, as per the World Gold Council. The price of gold has also seen a rally over the last few months. Earlier in the day, Das announced that the overall forex reserves have touched an all-time high of USD 645.6 billion as of March 29, a breakup of which will be made available on Friday evening with the release of the weekly statistical supplement (WSS). Speaking to reporters, Das said RBI has consciously focused on building forex reserves over the last four-five years to act as a buffer against any future risks where there are dollar outflows from India. He also said the central bank's approach on the forex front adds strength to the national balance sheet as well. Das also said that having a stable rupee is a priority for the Reserve Bank.

India is building up gold reserves says RBI governor Shaktikanta Das

<ul><li>The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI) is proposing to increase timings for <keyword id="897906" type="PERSON" weightage="20" keywordseo="forex-trade">forex trade</keyword>. </li><li>Currently the over-the-counter forex exchange-traded currency derivatives market functions till 5 pm. </li><li>The special committee wants it extended it to 9 pm. </li></ul>The Reserve Bank of India (RBI) is proposing to increase timings for forex trade to bring in more overseas participants. If timings are extended, Indian trade markets will be able to sync better with their global counterparts. Currently the over-the-counter forex exchange-traded currency derivatives market functions till 5 pm. The special committee wants it extended it to 9 pm. The proposal was floated after an internal committee meeting of the Central Bank recommended the revision for currency markets and that of short-term loans. More participants If accepted, this move can increase trading volumes by drawing more overseas participants. “Gradual integration of the Indian economy with the global economy and increased interest of foreign investors in Indian markets aided by a liquid USD/INR forex market have led to growing volumes in rupee trades in the offshore markets,” the committee mentioned in the RBI draft report. The report also said that volumes in the offshore currency markets have steadily increased as compared to the onshore exchanges, during last 3-4 years. The market share of domestic exchanges in the US dollar and Rupee futures have come down to 56% in 2018-19, from 74% in 2014-15. The RBI also proposed to stretch the inter-bank call money market from 5 pm to 6 pm. Presently, money market trading hours start at 9 am. “The group has recommended the extension of timings for both collateralized and uncollateralised segments of the money market,” the committee said. Extension of an hour in the timings for repo market is also expected from the current 2:30 pm. The committee also recommended shifting settlement timings for primary auction or Open Market Operation from presently at noon to around 4 pm.

RBI wants to extend forex trading timings to bring more global players

<keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>'s <keyword id="19998537" type="General" weightage="20" keywordseo="foreign-exchange-reserves" source="keywords">foreign exchange reserves</keyword> have surged to a record high, reaching a new peak of $ 666.85 billion, according to data from the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>). The data highlights an increase of $9.69 billion in just one week, as of 12 July, surpassing the previous high of $657.2 billion. The reserves have been rising intermittently for some time now. The RBI data reveals that India's <keyword id="20972687" type="General" weightage="20" keywordseo="foreign-currency-assets" source="keywords">foreign currency assets</keyword> (FCA), the largest component of <keyword id="20344433" type="General" weightage="20" keywordseo="forex-reserves" source="keywords">forex reserves</keyword>, rose by $8.3 billion to $585.47 billion. Additionally, <keyword id="19895579" type="General" weightage="20" keywordseo="gold" source="keywords">gold</keyword> reserves increased by $1.2 billion, reaching $58.66 billion. According to a recent RBI report, India's foreign exchange reserves are now sufficient to cover over 11 months of projected imports. In the calendar year 2023, the RBI added approximately $58 billion to its foreign exchange reserves. In contrast, in 2022, India's forex reserves declined by a cumulative $71 billion. Forex reserves, or foreign exchange reserves (FX reserves), are assets held by a nation's central bank or monetary authority, typically in reserve currencies such as the <keyword id="19949640" type="General" weightage="20" keywordseo="us-dollar" source="keywords">US dollar</keyword>, and to a lesser extent, the euro, Japanese yen, and pound sterling. The country's foreign exchange reserves last reached an all-time high in October 2021. Much of the subsequent decline can be attributed to the increased cost of imported goods in 2022. Additionally, the relative fall in forex reserves has been linked to the RBI's market interventions, to manage the uneven depreciation of the rupee against a surging US dollar. The RBI frequently intervenes in the market through liquidity management, including the sale of dollars, to prevent steep depreciation of the rupee. The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

India's forex reserves hit record $666.85 billion, driven by surging gold and foreign currency assets

India's forex reserves continued on the northward trajectory, rising to a new record of USD 454.492 billion on the back of a USD 1.07 billion accretion for the week ended December 13, the RBI said on Friday. The forex kitty had risen by USD 2.342 billion in the previous reporting week to USD 453.422 billion. In the current reporting week, the rise was mainly on account of an increase in foreign currency assets, a major component of the overall reserves, which surged by USD 1.163 billion to USD 422.422 billion, according to the data. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and the yen held in forex reserves. During the reporting week, gold reserves decreased by USD 110 million to USD 26.968 billion, the RBI data said. The special drawing rights with the International Monetary Fund were up by USD 2 million to USD 1.444 billion during the week. The country's reserve position with the International Monetary Fund also increased by USD 14 million to USD 3.658 billion, the data showed.

India's forex reserves continue to grow hitting a record high of $454.49 billion

New Delhi, Banking issues like reluctance to process <keyword id="6358355" type="General" weightage="20" keywordseo="forex" source="Orion">forex</keyword> received through alternate channels and high processing fees are hindering the growth of <keyword id="7848945" type="General" weightage="20" keywordseo="e-commerce-exports" source="Orion">e-commerce exports</keyword> from India, and there is a need to bring mindset change to unlock the sector's potential, a report by think tank GTRI said on Monday. Unlocking India's e-commerce export potential to USD 350 billion by 2030 requires addressing banking issues that hinder growth and increase operational costs, the Global Trade Research Initiative (GTRI) said. "To initiate change, both the RBI and banks must shift their mindset towards treating small-value exports differently from larger ones. This shift is essential to prevent misuse while streamlining processes. Without this fundamental change, any reforms attempted by the RBI and banks will fall short," it said. Small e-commerce businesses often face challenges because banks are not equipped to handle low-value transactions efficiently, it added. The key issues include reluctance to process forex through alternate channels, high processing fees, incorrect purpose code allocation, and limitations in the RBI's EDPMS (Export Data Processing and Monitoring System). The Reserve Bank of India tracks export payments and reconciliation through its Export Data Processing and Monitoring System. "Banks are happy to process forex received through bank transfers but reluctant to process forex received through foreign currency cheques, payment gateways like PayPal, credit cards, <keyword id="151105" type="General" weightage="20" keywordseo="western-union" source="Orion">Western Union</keyword>, cash receipt when a buyer selects item live in the retail shop," it said. Banks delay crediting forex received in a firm's account when payments are received through such channels, and this affects cash flow and hampers business operations, the report noted. Banks charge money multiple times at different stages for the same small-value shipment, it added. Elaborating this, it said that essential charges include charges for submitting shipping bills (Rs 80 to Rs 2,000) at the time of forex realisation (1-to-2.5 per cent of value), intermediary bank charges during forex transfers (USD 10 to USD 55 per transaction), penalties for bills pending at EDPMS (Rs 100 per shipping bill per month). "Most charges are fixed for a transaction irrespective of value. Bank charges can exceed 50-60 per cent of the shipment value. This makes e-commerce exports commercially unviable," it said, adding banks allocate purpose codes for each remittance but frequently issue incorrect codes. For example, purpose code P0103, meant for advance payments, is often assigned even when exports have already occurred and the firm has submitted proof. Incorrect allocation of purpose codes by banks leads to reconciliation problems, EDPMS pendency issues, and issuance of notices and fines on exporters. The RBI issues notices to exporters for EDPMS defaults but does not give them direct access to view their records, as per the report. "Exporters must rely on banks/DGFT for critical data, leading to unnecessary delays and complications," GTRI co-founder <keyword id="504704" type="General" weightage="50" keywordseo="ajay-srivastava" source="Orion">Ajay Srivastava</keyword> said. The report suggested eight action points, such as the creation of a single window platform for e-commerce and small-value shipments, standardise bank charges, defining a time limit for banks to complete all small export-related requests by the RBI, and exempting shipment value up to USD 1,000 per shipment from monitoring till the single window is implemented. It also pitched for an extension of the timeline for EDPMS closure from the current nine months to 24 months and redesign the courier shipping bill to reflect correct payment terms. On the single window, Srivastava called for integrating the RBI, banks, Customs, DGFT, India Post, courier companies and exporters. "This platform should cover all realisation methods other than bank transfers. The exporter should be able to conduct all transactions online. SW will automate the EDPMS reconciliation process," he added. He said that high processing fees and multiple charges at different stages of exporting hurt small businesses the most, and the banks should charge a one-time fee for each shipment instead of further charges at various stages. "The government could subsidise these fees to ease the financial burden on small exporters," the report said, adding there is a need to raise the export realisation variation limit from 25 per cent to 100 per cent.

Banking issues hinder growth of exports through e-commerce: GTRI report

Mumbai: The <keyword id="19949639" type="General" weightage="100" keywordseo="rupee" source="keywords">rupee</keyword> appreciated 5 paise to 83.39 against the US <keyword id="19904292" type="General" weightage="20" keywordseo="dollar" source="keywords">dollar</keyword> in early trade on Monday, supported by a firm trend in domestic <keyword id="19925781" type="General" weightage="20" keywordseo="equities" source="keywords">equities</keyword>. <keyword id="19950258" type="General" weightage="20" keywordseo="forex" source="keywords">Forex</keyword> traders said the local unit gained ground as the American currency and crude <keyword id="19927122" type="General" weightage="20" keywordseo="oil" source="keywords">oil</keyword> prices retreated from their elevated levels. At the interbank foreign exchange <keyword id="19913381" type="General" weightage="20" keywordseo="market" source="keywords">market</keyword>, the local unit opened at 83.40 against the greenback. It later touched 83.39 in initial trade, registering a rise of 5 paise from its previous close. On Friday, the rupee appreciated 8 paise to close at 83.44 against the US dollar. Forex traders said there was likely some intervention by the <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> which resulted in the pullback of the local unit. "The Indian forex reserves fell to USD 643.162 billion after rising for 7 weeks in succession as the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) would have sold dollars to rein in the rupee," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. Meanwhile, India's forex reserves dropped by USD 5.401 billion to USD 643.162 billion for the week ended April 12, the Reserve Bank said on Friday. The overall reserves increased USD 2.88 billion to a new high of USD 648.562 billion in the previous reporting week. "The RBI will be present to keep a tab over the depreciation while oil companies and FPIs buy dollars," Bhansali said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 106.07, lower 0.07 per cent. Brent crude futures, the global oil benchmark, fell 0.76 per cent to USD 86.63 per barrel. On the domestic equity market front, the 30-share <keyword id="19950208" type="General" weightage="20" keywordseo="BSE-Sensex" source="keywords">BSE Sensex</keyword> climbed 295.86 points or 0.40 per cent to 73,384.19 in early trade. The NSE Nifty advanced 106.00 points or 0.48 per cent to 22,253.00. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth Rs 129.39 crore, according to exchange data.

Indian rupee continues to rally amid strong domestic cues; reaches 83.39 against US dollar

New Delhi, India has a strong foreign exchange reserve and the country is in a comfortable position to meet all the requirements even in any worst-case scenario in the next five-six years, Commerce and industry Minister <keyword id="6355222" type="General" weightage="20" keywordseo="piyush-goyal" source="Orion">Piyush Goyal</keyword> said on Wednesday. India's forex kitty jumped USD 3.553 billion to USD 599.529 billion for the week ended May 12, according to the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>. The minister also said that the government efforts have helped in managing inflation and "I am happy that it has been respected and recognised by the <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> (as) they have also taken a pause on the interest rates during the last MPC (Monetary Policy Committee) meeting". On <keyword id="138463" type="General" weightage="20" keywordseo="forex-reserves" source="Orion">forex reserves</keyword>, he said: "We have strong foreign exchange reserves... In the worst case with whatever difficulty anybody may have, India is comfortable for the next 5 or 6 years, given our forex reserves today, to be able to meet our forex requirements." The minister was speaking at the annual session of industry body CII here. He added that no other developing country in the world is in such a "sweet spot" and it was the first time in many years that business persons are seeing interest rates almost at par with developed countries. "I believe this is a compelling case for investments, for growth and for expanding our international outreach, for bringing technology, for bringing innovation into the country," he said, suggesting the industry should focus on quality, innovation and skilled manpower. Further he said that India's trading partners want India to fast track negotiations for free trade agreements (FTAs). India is at present negotiating such agreements with nations including Canada, EFTA (<keyword id="601271" type="General" weightage="50" keywordseo="european-free-trade-association" source="Orion">European Free Trade Association</keyword>), the UK, and the European Union (EU). "It shows the increased importance of India in the global order. FTAs are two way traffic... I feel very sad when I am being told sometimes that I (industry) want access to the EU market, but please do not allow them to come into our market. "Those days are gone, this is a new India, this is an India which engages with the world from a position of strength and with full confidence". On exports, the minister exuded confidence to achieve USD 2 trillion worth of goods and services exports by 2030. He suggested the industry expand markets with an open mind, and engage with the world. "Look at our import basket, the basket largely gets affected by oil, which will have its own trajectory, possibly a lowering trajectory or a downward trend in the years to come. Our export basket has all the things that the world wants," he said adding the industry should move forward.

India's forex reserves are at a comfortable position says Piyush Goyal

<keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>'s <keyword id="6358355" type="General" weightage="20" keywordseo="forex" source="Orion">forex</keyword> reserves dropped by USD 5.681 billion to USD 561.267 billion for the week ended February 17, the <keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword> said on Friday. This is the third consecutive week of a drop in the reserves after the USD 8.319 billion decrease in the previous reporting week to USD 566.948 billion. In October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. For the week ended February 17, the foreign currency assets, a major component of the reserves, decreased by USD 4.515 billion to USD 496.072 billion, according to the <keyword id="513231" type="General" weightage="50" keywordseo="weekly-statistical-supplement" source="Orion">Weekly Statistical Supplement</keyword> released by the RBI. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves decreased for the third week running and were USD 1.045 billion down to USD 41.817 billion, the RBI said. The Special Drawing Rights (SDRs) were also down by USD 87 million to USD 18.267 billion, the apex bank said. The country's reserve position with the <keyword id="6355408" type="General" weightage="50" keywordseo="imf" source="Orion">IMF</keyword> was down by USD 34 million to USD 5.111 billion in the reporting week, the apex bank data showed. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-nifty50-open-in-green-amid-mixed-global-cues-psu-banks-metals-it-top-gainers/articleshow/98197776.cms">Markets fall for sixth straight session amid weak cues from Asian markets; metals lead sell-off</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/spicejets-q3-net-profit-jumps-162-to-110-crore-on-air-travel-recovery-shares-surge-13/articleshow/98211990.cms">SpiceJet’s Q3 net profit jumps 162% to ₹110 crore on air travel recovery, shares surge 13%</a>

India's forex reserves drop by USD 5.68 billion to USD 561.26 billion

India’s Foreign exchange reserves grew by $ 625.5 million and touched $ 360.296 billion in the week to December 30. 
 The <keyword id="6354335" type="CITY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI) said this was because the foreign currency assets increased. 
 However, in the previous week, the <keyword id="6358355" type="ORGANIZATION" weightage="20" keywordseo="forex">forex</keyword> reserves had declined by $ 935.2 million to $ 359.671 billion. 
 
The reserves had touched a life-time high of $ 371.99 billion in the week to September 30, 2016. 
 
Foreign currency assets (FCAs), a major component of the overall reserves, increased by $ 612.4 million to $ 336.582 billion in the reporting week. 
 
FCAs, expressed in US dollar terms, include the effects of appreciation/depreciation of non-US currencies, such as the euro, pound and the yen held in the reserves. 
 <keyword id="18712" type="ENTERTAINMENT" weightage="20" keywordseo="Gold">Gold</keyword> reserves remained steady at $ 19.982 billion in the reporting week, the RBI said. 
 The special drawing rights with the <keyword id="6366068" type="ORGANIZATION" weightage="20" keywordseo="INTERNATIONAL-MONETARY-FUND">International Monetary Fund</keyword> rose by $ 4.9 million to $ 1.432 billion, while India's reserve position with the Fund, too, increased by $ 8.2 million to $ 2.299 billion, RBI said.

India’s Forex reserves touch $ 360.296 billion

<ul><li>These cards can be used at ATMs, point of sale (PoS) machines, and online merchants overseas. </li><li>Additionally, <keyword id="597447" type="General" weightage="20" keywordseo="rupay" source="Orion">RuPay</keyword> Debit, credit, and prepaid cards will be authorised for issuance in foreign jurisdictions. </li><li><keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>’s goalposts for Payment Vision 2025 has already outlined a roadmap for the global outreach of RTGS, NEFT, UPI, and RuPay cards. </li></ul>In a bid to provide more payment options for Indians travellers abroad, the Reserve Bank of India (RBI) has decided to allow Indian banks to issue RuPay <keyword id="1018384" type="General" weightage="20" keywordseo="prepaid-forex-cards" source="Orion">prepaid forex cards</keyword>. These cards can be used at ATMs, point of sale (PoS) machines, and online merchants overseas. “... Further, RuPay debit, credit, and prepaid cards will be enabled for issuance in foreign jurisdictions, which can be used internationally, including in India. These measures will expand the reach and acceptance of RuPay cards globally. Necessary instructions will be issued separately,” read the RBI’s statement on Developmental and Regulatory Policies, issued on June 8. Says Rajsri Rengan, India Head of Development, Banking and Payments, at FIS, a fintech company, “The permission granted to banks for issuing RuPay pre-paid forex cards opens up new avenues for seamless and flexible cross-border transactions. This development brings forth enhanced convenience and efficiency for individuals and businesses engaged in international trade.” RuPay, as the first domestic card payment network in India, has achieved wide acceptance across various channels such as ATMs, point-of-sale (POS) devices, and e-commerce websites throughout the country. By promoting electronic payments, RuPay aligns with the Reserve Bank of India's goal of fostering a "less cash" economy, encouraging banks and financial institutions to embrace technology and offer digital payment solutions.RuPay credit cards can now be linked to a UPI ID, thus directly enabling safe, and secure payment transactions. According to a report by merchant platform Pine Labs, it is projected that transaction volumes on the RuPay network will experience a compound annual growth rate (CAGR) of 20% over the next three years. By the fiscal year 2025-26 (April-March), transaction volumes are anticipated to reach 3.2 billion, a significant increase from the 1.8 billion transactions recorded in 2022-23. RBI’s goalposts for Payment Vision 2025 has already outlined a roadmap for the global outreach of RTGS, NEFT, UPI, and RuPay cards. Recently UPI has been integrated with Singapore’s PayNow, and Japan is expected to join the UPI system as well. UPI is also expected to be adapted by other countries as well.

RBI allows banks to issue RuPay prepaid forex cards

New Delhi [<keyword id="19895063" type="General" weightage="100" keywordseo="India" source="keywords">India</keyword>], May 19 (ANI): India's <keyword id="19998537" type="General" weightage="20" keywordseo="foreign-exchange-reserves" source="keywords">foreign exchange reserves</keyword> rose for the second straight week, by <keyword id="19944038" type="General" weightage="20" keywordseo="USD" source="keywords">USD</keyword> 2.561 billion to USD 644.151 billion in the week that ended on May 10, according to data shared by the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>). Preceding these two weeks, the forex kitty had seen three consecutive weeks of decline. The country's foreign exchange reserves had hit an all-time high of USD 648.562 billion recently. According to the latest data released by the Reserve Bank of India (RBI), India's foreign currency assets (FCA), the biggest component of the forex reserves, rose by USD 1.488 billion to USD 565.648 billion. <keyword id="20344434" type="General" weightage="20" keywordseo="gold-reserves" source="keywords">Gold reserves</keyword> during the week rose by USD 1.072 billion to USD 55.952 billion. India's foreign exchange reserves, which had reached an all-time high are sufficient to cover 11 months of projected <keyword id="19933566" type="General" weightage="20" keywordseo="imports" source="keywords">imports</keyword>, according to the Monthly Economic Review report of the Department of Economic Affairs under the Ministry of Finance, released lately. In the calendar year 2023, the RBI added about USD 58 billion to its foreign exchange kitty. In 2022, India's forex kitty slumped by USD 71 billion cumulatively. Foreign exchange reserves have risen about USD 23 billion, on a cumulative basis, in 2024 so far. Forex reserves, or foreign exchange reserves (FX reserves), are assets that are held by a nation's central bank or monetary authority. It is generally held in reserve currencies, usually the US Dollar and, to a lesser degree, the Euro, Japanese Yen, and Pound Sterling. The country's foreign exchange reserves last touched their all-time high in October 2021. Much of the decline after that can be attributed to a rise in the cost of imported goods in 2022. Also, the relative fall in forex reserves could be linked to the RBI's intervention, from time to time, in the market to defend the uneven depreciation in the rupee against a surging US dollar. Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the sale of dollars, to prevent a steep depreciation in the rupee. The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

You Searched For "forex" and got 12 results

What is Forex? Understanding the market for exchanging foreign currencies

Charles Bovaird

India is building up gold reserves says RBI governor Shaktikanta Das

PTI

RBI wants to extend forex trading timings to bring more global players

BI India Bureau

India's forex reserves hit record $666.85 billion, driven by surging gold and foreign currency assets

ANI

India's forex reserves continue to grow hitting a record high of $454.49 billion

PTI

Banking issues hinder growth of exports through e-commerce: GTRI report

PTI

Indian rupee continues to rally amid strong domestic cues; reaches 83.39 against US dollar

PTI

India's forex reserves are at a comfortable position says Piyush Goyal

PTI

India's forex reserves drop by USD 5.68 billion to USD 561.26 billion

PTI

India’s Forex reserves touch $ 360.296 billion

BI India Bureau

RBI allows banks to issue RuPay prepaid forex cards

Anagh Pal

India's foreign exchange reserves rose by USD 2.6 billion in the week ending May 10: RBI

ANI

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