Mumbai: India’s foreign exchange (forex) reserves dropped for a sixth consecutive week. The forex reserves touched a near three-month low in the week ended on November 8. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
As per RBI data, India’s foreign exchange reserves fell by $6.477 billion to $675.653 billion in the week ended November 8. In the previous reporting week, the forex reserves had dropped by $2.675 billion to $682.13 billion.
The overall reserves had dropped by $3.463 billion to $684.805 billion in the week ended October 25.The overall reserves had dropped by $2.163 billion to $688.267 billion in the previous reporting week. In the previous week, the country’s forex kitty had dropped by $10.746 billion. In the week before that, it had fallen by $3.709 billion. In the week ended on September 27, the reserves had jumped by $12.588 billion to an all-time high of $704.885 billion. In the previous week ended September 20, the forex reserves jumped by $2.8 billion to $692.3.
India’s forex reserves jumped $223 million to a fresh all-time high of $689.458 billion for the week ended September 13. The forex kitty had jumped by $5.248 billion to a record $689.235 billion for the previous reporting week. In nearly a month between August 9 and September 13, India’s foreign exchange rose by 2.88 per cent from $670.119 billion to $689.458.
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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.
Foreign currency assets fell by $4.467 billion to $ 585.383 billion in the week ended November 8. Gold reserves fell from $1.936 billion to $67.814 billion. It was USD 60 million in India’s Special Drawing Rights (SDRs) declined by $60 million to $ 18.159 billion. India’s reserve position with the International Monetary Fund (IMF) also declined by $14 million to $ 4.298 billion during the reporting week.