Mumbai: Foreign exchange reserves of India declined for the third consecutive week. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
According to the RBI data, the forex reserves eroded by $2.417 billion to $601.453 billionin the week that ended on August 4. In the previous reporting week, the overall reserves had dropped by $3.165 billion to $603.87 billion.
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On October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as RBI deploys the kitty to defend the rupee amid pressures caused majorly by global developments.
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 foreign currency assets decreased by $1.937 billion to $533.40 billion. Gold reserves were down by $224 million to $44.68 billion. The special drawing rights (SDRs) were down by $171 million to $18.274 billion. The country’s reserve position with the IMF was down by $86 million to $5.099 billion.
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