Foreign exchange reserves of India fall sharply to $617.3 billion

Mumbai: Foreign exchange reserves of India declined sharply declined to $617.3 billion for the week ending January 5. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. As per RBI data, the forex reserves slipped down by  $5.89 billion to reach $617.3 billion.

This downturn follows four consecutive weeks of growth. Throughout this fiscal year, the reserves have demonstrated an overall increase of $55.72 billion.

In the preceding week concluding on December 29, forex reserves surged by  $2.759 billion to  $623.2 billion, marking the highest point thus far in the fiscal year.  The week before that also saw an increase, with reserves climbing by $4.471 billion to $620.441 billion.

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In the week before, the overall reserves had risen by  $9.112 billion to $615.971 billion. In the week before, the overall reserves had risen by $2.816 billion to $606.859 billion.n week ended on December 1, forex reserves jumped by $6.107 billion to $604.042 billion. The reserves were $597.935 billion in the preceding week ended November 24. The forex reserves were last above the $600 billion mark on August 11 this year. In October 2021, the forex kitty had reached an all-time high of $645 billion.

Forex reserves, or foreign exchange reserves (FX reserves), are assets that are held by a nation’s central bank or monetary authority. It is generally held in reserve currencies, usually the US Dollar and, to a lesser degree, the Euro, Japanese Yen, and Pound Sterling.

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 fell by  $4.96 billion to  $546.65 billion. Gold  reserves saw a decline of $839 million, reaching $47.48 billion. The Special Drawing Rights (SDRs) decreased by $67 million to $18.29 billion. The country’s reserve position with the IMF declined by $26 million to  $48.66 billion.