Indian forex reserve falls this week by 0.95% from 622 billion dollars to 617.38 billion dollar. This is the highest dip since 16th Oct 2023. From 16th Oct 2023 Indian forex reserve rose about 40 billion dollar which is about 6.8%. As we know Foreign exchange reserve plays very important role in the economic stability of a country. Foreign exchange reserve acts as a financial buffer to counter external shocks and ensure smooth international trade. Yesterday we saw a decline in the weekly Forex reserve of our country which is a major issue for concern.
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Highest fall of around 18% in recent years in Forex Reserve
From August 2021 to Oct 2022 we saw the highest fall in the Foreign exchange reserve of around 18.53%. which occurs in approximate 410 days. that was a massive fall in forex reserve. One of the primary reasons affecting foreign exchange reserves is the trade balance. If a country imports more than it exports, it may experience a decline in its forex reserve. Decline in foreign exchange reserve affect businesses engagement in international trade, thus affecting their costs and profitability.
Temporary falls in forex reserve are not unusual. They are manageable. It is necessary for policy makers to carefully assess the underlying causes and take appropriate measures to address the root issues
Quarterly Results of DMart Out
Avenue Supermart which is backed by Radhakishan Damani announced its quarter 3rd result for fiscal year 2023-24 which shows a 17% rise in its consolidated net profit at 690.61 crore which was 589.68 crore in the year ago period. The EPS(earning per share) for the December quarter stook at Rs 10.62 compared to 9.10 in the year-ago period. The EBITDA for the company in the quarter 3rd of financial year 2024 stood at 1120 crore compared to 965 crore in the corresponding quarter last year. EBITDA margin stood at 8.3 percent in the quarter under review. Total expenses during the quarter was 12656.46 crore, compared to 10789 crore in the same quarter previous year. Avenue Supermarts staff expenses rose from 192.31 crore in previous year to 234.31 crore in the current year.
What is Forex Reserve?
Forex reserve a short form of foreign exchange reserve are assets held on reserve by central bank in foreign currencies. Forex reserves are used to back liabilities and influence monetary policy.
How Forex Reserve Work?
Foreign exchange reserve includes bond, treasury bills, deposits, bank notes and other government securities. These financial assets serve a variety of functions, with their most crucial role being the provision of contingency funds for a central government agency in the event of a rapid devaluation or complete insolvency of their national currency.