Mumbai: The foreign exchange (forex) reserves of the country fell by $4.854 billion to $532.664 billion for the week ended September 30. The weekly statistical supplement data released by Reserve Bank of India (RBI) revealed this.
This is the 9th week in a row that the forex reserve is declining. It has reached their lowest levels since August 2020. The country’s forex reserves had reached an all-time high of $645 billion in last October.
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The weakening of the domestic currency is the main reason for this. India’s forex has fallen for 26 of the 32 weeks since Russia invaded Ukraine in late February.
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.
The FCAs dropped by $4.406 billion to $472.807 billion. The value of the gold reserves decreased by $281 million to $37.605 billion. The Special Drawing Rights (SDRs) dropped by $167 million to $17.427 billion. The country’s reserve position with the IMF was unchanged at $4.826 billion.
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