New Delhi: The foreign exchange reserves of the country touched a 15-month low during the week ended July 8. The forex reserves fell by $8.06 billion to $580.02 billion during the week ended July 8. This is the lowest since April 2021. The weekly statistical supplement data released by Reserve Bank of India (RBI). The forex reserves had touched $588.314 in the week ending July 1. The apex bank informed that the appreciation of the dollar and sustained capital outflows from India are the main reason for the downfall of the reserves.
With this, forex reserves have plummeted by $62.4 billion from the record high of $642.45 billion reported on September 3, 2021. Forex reserves have fallen by $13 billion in the two weeks ended June 8. Foreign investors have taken out Rs 2.24 lakh crore from the equity market and Rs 15,749 crore from debt since January this year.
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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.
FCAs fell by a $6.7-billion. Gold reserves fell by $1.236 billion to $39.186 billion. The special drawing rights with the International Monetary Fund slipped by $122 million to $18.012 billion. The country’s reserve position with the IMF decreased by $49 million to $4.966 billion.
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