Forex Reserves Fall $2.69 Bn to $717 Bn
India's forex reserves dropped by $2.69 billion to $717 billion. Experts say this was caused by using money from FCNR(B) deposits and by RBI dollar sales that defended the rupee's value. Reserves act as a buffer that helps the country pay for imports and steady its currency.
Context
Context: Forex reserves are the foreign currency and gold the central bank holds, and FCNR(B) deposits are dollar-linked accounts that NRIs can open with Indian banks. The RBI manages these reserves to keep the rupee stable when demand for dollars rises.
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