Business
Reserve Bank of India sells $13 billion in August to hold the Rupee at 80
BY S VENKAT NARAYAN
Our Special Correspondent
NEW DELHI, 17: The Reserve Bank of India (RBI) is estimated to have sold about $13 billion in the spot market in August to defend the rupee from falling further against the US dollar, The Economic Times has reported quoting top dealers who cited the depletion in the country’s forex reserves.This is the highest monthly currency market intervention so far in 2022-23 as the central bank is said to be defending the psychological mark of 80. Foreign exchange reserves plunged by nearly $21 billion to $553.1 billion in five consecutive weeks between July 29 and September 2, latest data from RBI show. A stable exchange rate is quintessential for foreign portfolio investors who are flocking back to India, experts said.
“If India wants to be a destination of choice for overseas investors, we need to have a stable exchange rate. Also, higher oil prices and a falling rupee will only stoke inflation fear in a country, which is now aiming for higher economic growth,” said Bhaskar Panda, Executive Vice President at the National Stock Exchange (NSE). “Such a combination of factors including global volatility may have prompted the central bank to stabilise US$-INR in the currency market,” he added.
The RBI did not comment on the matter. On record, the central bank always denies protecting at any level but acts to dampen high volatility.Panda said the forex reserves depletion “can well be replenished once India is included in the global bond index.”
“The RBI is clearly protecting the 80 level as we could see aggressive dollar selling over the past one month,” a chief currency dealer at a large bank said on condition of anonymity. The rupee plunged to a lifetime low of 80.13 against the US dollar on August 29.
A majority of India’s foreign exchange reserves is held in US dollar-denominated currency while the rest comes from investment in non-dollar assets. Out of $21 billion forex reserves’ depletion between July 29 and September 2, a chunk of $7 billion can be attributed to the devaluation of non-dollar assets, internal estimates show.
During the period, the dollar index, which measures the US unit against other major currencies, gained 3.6%. The remaining over $13 billion the central bank had likely sold in the spot market, cutting the rupee’s wild move while draining India’s US dollar stock, dealers said. “RBI’s intervention intensified since July end as we observed,” said Amit Pabari, founder and managing director of CR Forex, a Mumbai-based foreign exchange firm.
“The central bank is clearly defending the psychological level at 80 as it triggers more panic than actual reality.” He said the forex reserves depletion “can well be replenished once India is included in the global bond index”.
While a part of the rupee outperformance is attributed to speculation of Indian government bonds in the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) index, it now turns out that the interventions also helped, banking insiders said.
In a related development, Chief Economic Advisor V Anantha Nageswaran said on Tuesday that India is not defending the rupee. The RBI is taking steps to ensure that the movement of the rupee is gradual and in line with market trends, he added.
“India is not defending the rupee… I don’t think Indian fundamentals are such that we need to defend the rupee. The rupee can take care of itself,” he said at an event in New Delhi.
“The RBI is making sure that whatever direction the rupee is moving in line with the market trends is just gradual and doesn’t impose burdens either on the importers or the exporters,” Nageswaran added.
On declining foreign exchange reserves, he said, “Global risk aversion prevents capital from coming in. Naturally that is what (foreign) reserves are meant for.”
The fall in the reserves during the reporting week ended August 26 was on account of a dip in the foreign currency assets (FCA), a major component of the overall reserves, and the gold reserves, according to the Weekly Statistical Supplement released by the RBI on September 2.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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