Mumbai: The foreign exchange reserves of the country fell by $306 million to $601.057 in the week ended June 3. The decline in the Foreign Currency Assets (FCA) is the main reason for the downfall. The weekly statistical supplement released by the Reserve Bank of India (RBI) has revealed this. In the previous week, the reserves had increased by $3.854 billion to $601.363 billion. It had risen by $4.23 billion to $597.509 billion in the week ended May 20.
The foreign exchange reserves of the country comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the country’s reserve position with the International Monetary Fund (IMF). FCA is the largest component of the forex reserves. It includes the effect of appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves.
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FCA declined by $208 million to $536.779 billion. Gold reserves dipped by $74 million to $40.843 billion. The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) dropped by $28 million to $18.41 billion. The country’s reserve position with the IMF increased by $5 million to $5.025 billion.
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