{"id":28574,"date":"2018-10-24T13:15:31","date_gmt":"2018-10-24T07:45:31","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=28574"},"modified":"2018-10-24T13:15:31","modified_gmt":"2018-10-24T07:45:31","slug":"reserves-firepower-to-help-stem-rupees-losses","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/reserves-firepower-to-help-stem-rupees-losses\/","title":{"rendered":"\u2018Reserves firepower to help stem rupee\u2019s losses\u2019"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/todays-paper\/tp-business\/reserves-firepower-to-help-stem-rupees-losses\/article24295486.ece\">\u2018Reserves firepower to help stem rupee\u2019s losses\u2019<\/a><\/p>\n<p><strong><u>News:<\/u><\/strong><\/p>\n<ol>\n<li>The centre government affirmed that India has adequate foreign exchange reserves to deal with the current volatility.<\/li>\n<\/ol>\n<p><strong><u>Important facts:<\/u><\/strong><\/p>\n<ol start=\"2\">\n<li><strong><u> India\u2019s volatility is driven by the following factors:<\/u><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Proposed U.S. sanctions on Iran<\/li>\n<li>The mismatch in demand and supply of oil<\/li>\n<li>Ongoing trade war between the U.S. and China could impact exports from emerging markets including India.<\/li>\n<li>Downfall in Rupee (about 7% this year, making it the worst performing currency in Asia).<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong><u> Impacts:<\/u><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Trade deficit is expected in upcoming years.<\/li>\n<li>Rise in oil prices could further widen the trade deficit, which inconsequence can put pressure on rupee.<\/li>\n<\/ul>\n<ol start=\"4\">\n<li>Presently the country\u2019s forex reserves is approx. $410 billion<\/li>\n<li>The forex reserve situation is much better compared to 2013 crisis.<\/li>\n<li>India has witnessed increased forex reserves,services exports and inflow of remittances.<\/li>\n<li>Recently RBI has raised repo rates by 25 basis points.<\/li>\n<li>The increase in the key repo rate could squeeze credit for companies as well as lead to some cuts in capital spending by the government.<\/li>\n<li>The government could further raise funds through foreign currency non- repatriable (FCNR) deposits, sovereign bonds or other routes to increase reserves.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Reserves firepower to help stem rupee\u2019s losses\u2019 News: The centre government affirmed that India has adequate foreign exchange reserves to deal with the current volatility. Important facts: India\u2019s volatility is driven by the following factors: Proposed U.S. sanctions on Iran The mismatch in demand and supply of oil Ongoing trade war between the U.S. and&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/reserves-firepower-to-help-stem-rupees-losses\/\">Continue reading <span class=\"screen-reader-text\">\u2018Reserves firepower to help stem rupee\u2019s losses\u2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-28574","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704906390},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=28574"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28574\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=28574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=28574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=28574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}