CURRENT AFFAIRS

Detailed explanation-1: -You can indefinitely retain foreign exchange upto US$ 2, 000, in the form of foreign currency notes or travellers’ cheques (TCs) for future use. Any foreign exchange in cash in excess of this sum, is required to be surrendered to a bank within 90 days and TCs within 180 days of return.

Detailed explanation-2: -A deficit in the current account due to spending more of its Forex on importing products than it is earning through the sale of exports causes depreciation, and it further fluctuates the exchange rate of its domestic currency.

Detailed explanation-3: -In a report last month, the Reserve Bank said the country’s foreign exchange reserves at $ 564.1 billion as on December 9, 2022, covered 9.2 months of imports projected for 2022-23.

Detailed explanation-4: -“India’s foreign exchange reserves at $537.5 billion as of September 23, 2022, compare favourably with most peer economies. Two-thirds of the decline in reserves is due to valuation changes arising from an appreciating U.S. dollar and higher U.S. bond yields, ” Ms.