Foreign exchange reserves fell by $1.83 billion

The country’s foreign exchange reserves fell by $1.83 billion to $245.86 billion for the week ended December 5, due the fluctuation in the global currencies and selling of dollar by the Reserve Bank of India. Recently, the value of Rupees against the US dollar has been decreasing and touche to all time record of 50.60, according to media reports.

In the economy the foreign exchange reserve are important in the dealing with the valuation of foreign currencies. The exchange of foreign currencies are the major for the international trade and decides the devaluation rate of currencies.

In the previous week ended November 28, foreign exchange reserves had increased by $1.88 billion to $247.68 billion. But there is a fall recorded at the end of the first week of December 2008. It is the impact of the global financial crisis and the fluctuation in the foreign currencies, as the world economy is under the grip of global turmoil.