Fall in forex reserves due to rupee depreciation not worrying, say experts
The decline in foreign exchange reserves of the country due to the depreciation of the rupee is not a worrying factor, and there is coverage for nine months of imports, experts said here on Thursday.
The country's forex kitty continued its southward journey, with the overall reserves declining by USD 5.219 billion to USD 545.652 billion for the week ended September 16, the Reserve Bank of India had said.
The reserves, which have been dipping as the central bank deploys the kitty to defend the rupee amid pressure caused majorly by global developments, had declined by USD 2.23 billion to USD 550.87 billion in the previous week.
State Bank of India Group Chief Economic Adviser Soumya Kanti Ghosh said, "India's foreign exchange reserves have gone down from USD 630 billion to USD 550 billion. But is not a cause for concern as there is coverage for nine months of imports."
However, he said the rupee should find some value.
HDFC Bank Chairman Atanu Chakrabarty said India is not decoupled