RBI's efforts to stabilise rupee hit country's forex reserves: Experts
Mumbai, Aug 17 : A strong US dollar and subsequent interventions by the country's central bank to stabilise the rupee drained over $1.80 billion from India's foreign exchange (forex) reserves, analysts said on Friday.
As per the Reserve Bank of India (RBI) weekly statistical supplement, the overall forex reserves plunged by $1.82 billion during the week ended August 10 to $400.88 billion from $402.70 billion reported for the week ended August 3.
According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, the decline in Forex reserves can be attributed to the RBI's intervention to stem the decline in rupee's fall.
The RBI is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit
India's forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the RBI's position with the International Monetary Fund (IMF).
In recent days, factors such as geo-political developments, wider trade deficit, along with outflow of foreign funds have pulled the Indian rupee to fresh record intra-day and closing lows.
On Thursday, the Indian rupee had plunged to an intra-day low level of 70.39-40 -- its lowest ever mark -- against the greenback prompting automobile manufacturers and other import dependent sectors to raise prices.
It settled at a record closing low of 70.16 against the US dollar on Thursday.
Segment-wise, FCAs -- the largest component of the Forex reserves -- receded by $1.94 billion to $376.26 billion during the week under review.
Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global currencies. The individual movements of these currencies against the US dollar impacts the overall reserve value.
"A consistent decline in reserves show that the RBI is continuously intervening in the market to protect the rupee," Rushabh Maru, Research Analyst, Anand Rathi Shares and Stock Brokers, told IANS.
"Another reason is the fact that foreign currency assets include the effect of appreciation or depreciation of the currencies such as Euro, Pound etc held in the reserves. Since Euro and Pound both have depreciated sharply in recent months, the fall in valuation is also the reason for decline in the reserves."
However, the value of the country's gold reserves increased by $145.6 million to $20.69 billion.
The country's SDRs' value slipped by $9.2 million to $1.46 billion, while the country's reserve position with the IMF inched down by $9.2 million to $2.45 billion.
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World Test Championship final-bound South African players likely to miss IPL playoffs
Johannesburg (PTI): South African players who have been picked for the World Test Championship Final against Australia are likely to miss the IPL playoffs as the country's cricket board is standing firm on prioritising national duty over league commitments.
The BCCI confirmed on Monday that the IPL will resume on May 17 with the final slated for June 3.
However, the revised schedule has left players from WTC finalists Australia and South Africa in a tight spot. The franchises and the BCCI have urged foreign boards to make their players available for the remainder of the tournament.
CSA, however, has reiterated its commitment to WTC Final preparations.
"It is an individual decision, obviously, to return or to play or continue," CSA's director of national teams and high performance Enoch Nkwe said during press conference.
"One thing we've made clear, and we are finalising this with the IPL and the BCCI, is sticking to our original plan when it comes to the WTC preparations."
"May 26 is the latest for the Test guys to come back. The original plans don't change because the No. 1 priority is the WTC final. We've been engaging with them over the last day or two to make sure we're all on the same page," he added.
Eight South African players -- Kagiso Rabada (Gujarat Titans), Lungi Ngidi (Royal Chalengers Bengaluru), Tristan Stubbs (Delhi Capitals), Aiden Markram (Lucknow Super Giants), Ryan Rickelton (Mumbai Indians), Corbin Bosch (MI), Marco Jansen (Punjab Kings) and Wiaan Mulder (Sunrisers Hyderabad) -- have been named in the Proteas squad for the WTC Final, scheduled to start from June 11 in London.
Currently, GT, RCB, MI, PBKS, DC and LSG are in contention for an IPL playoff spot.
South Africa head coach Shukri Conrad echoed CSA's stance.
"Our initial agreement with IPL-BCCI was, with the final being on the 25th, our players would return on the 26th, so that it allows them ample time before we fly out on the 30th. As it stands, we're not budging on this. We want our players back on the 26th," he said.
"That is the ongoing conversations that are being had between people in a higher pay grade than I am. They're dealing with that. We want our players back on the 26th and hopefully that comes to fruition."
The IPL season was suspended on May 9 due to a military confrontation between India and Pakistan, triggered by the April 22 terrorist attack in Pahalgam, South Kashmir. A ceasefire announced the following day paved the way for the tournament's resumption.
As per the new schedule, the league stage ends on May 27, with playoffs running from May 29 to June 3, dates that clash with CSA's WTC preparations.
While CSA has taken a strong position, Cricket Australia has allowed its players to decide individually, and the England and Wales Cricket Board (ECB) is set to review its No Objection Certificates (NOCs).
