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India’s forex reserves decline for third week in a row

Mumbai: Foreign exchange reserves of India declined for third week in a row. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.

India’s forex reserves dropped $2.412 billion to $637.922 billion during the week ended April 26. In the previous reporting week, the overall reserves had declined $2.28 billion to $640.33 billion. For the week ended April 5, the reserves had hit an all-time high of $648.562 billion following multiple weeks of increases. The earlier high of $642.453 billion achieved in September 2021 got surpassed in March this year.

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.

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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.

The foreign currency assets  decreased $1.159 billion to $ 559.701 billion during the week ended on April 26. Gold reserves decreased $1.275 billion to $55.533 billion during the week. The Special Drawing Rights (SDRs) were up $15 million to $18.048 billion. India’s reserve position with the IMF was also up $ 8 million to $4.639 billion in the reporting week.

 

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