Foreign exchange reserves of India fall by $897 million

New Delhi: The Foreign exchange reserves of the country fall by $897 million to $572.978 billion in the week ended August 5. The weekly statistical supplement data released by Reserve Bank of India (RBI) revealed this.In the week ended July 29, the forex reserves had risen $2.315 billion to $573.875 billion.

As per the data, dip in the Foreign Currency Assets (FCA) is the main reason for the fall in the foreign exchange reserves. 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 $1.611 billion to $509.646 billion. Gold reserves increased $671 million to $40.313 billion. The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose $46 million to $18.031 billion. The country’s reserve position with the IMF declined $3 million to $4.987 billion.