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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Parliament passes Waqf (Amendment) Bill, 2025
New Delhi (PTI): Parliament early Friday passed the contentious Waqf (Amendment) Bill, 2025, after it was approved by the Rajya Sabha.
The Lok Sabha had on Thursday approved the Bill after over a 12-hour debate.
In Rajya Sabha, the Bill got 128 votes in its favour and 95 against after all the amendments moved by the opposition were rejected.
In the lower house, the bill was supported by 288 MPs while 232 voted against it.
Participating in a debate in the Rajya Sabha, Minority Affairs Minister Kiren Rijiju said the Bill was brought with a number of amendments based on suggestions given by various stakeholders.
"The Waqf Board is a statutory body. All government bodies should be secular," the minister said, explaining the inclusion of non-Muslims on the board.
He, however, said the number of non-Muslims has been restricted to only four out of 22.
Rijiju also alleged that the Congress and other opposition parties, and not the BJP, were trying to scare Muslims with the Waqf Bill.
"You (opposition) are pushing Muslims out of the mainstream," he added.
He said for 60 years, the Congress and others ruled the country, but did not do much for Muslims and the community continues to live in poverty.
"Muslims are poor, who is responsible? You (Congress) are. Modi is now leading the government to uplift them," the minister said.
According to the Waqf (Amendment) Bill, Waqf tribunals will be strengthened, a structured selection process will be maintained, and a tenure will be fixed to ensure efficient dispute resolution.
As per the Bill, while Waqf institutions' mandatory contribution to Waqf boards is reduced from 7 per cent to 5 per cent, Waqf institutions earning over Rs 1 lakh will undergo audits by state-sponsored auditors.
A centralised portal will automate Waqf property management, improving efficiency and transparency.
The Bill proposes that practising Muslims (for at least five years) can dedicate their property to the Waqf, restoring pre-2013 rules.
It stipulates that women must receive their inheritance before the Waqf declaration, with special provisions for widows, divorced women and orphans.
The Bill proposes that an officer above the rank of collector investigate government properties claimed as Waqf.
It also proposes that non-Muslim members be included in the central and state Waqf boards for inclusivity.
