The Reserve Bank of India (RBI) recently intervened in the foreign exchange market, injecting liquidity to stabilize the currency. This move led to a significant drop in the value of Life Insurance Corporation of India’s (LIC) investments, resulting in a staggering loss of approximately Rs 84,000 crore.
In the first week of August, the RBI had injected around Rs 2.5 lakh crore of liquidity into the system, which helped to stabilize the foreign exchange market. This, in turn, led to a significant depreciation of the Indian rupee (INR) against the US dollar (USD). The rupee, which was trading at around 78-79 against the dollar, slumped to over 82-83 levels. This sudden depreciation affected the value of LIC’s investm