Mumbai: Foreign exchange reserves of India dropped $ 1.31 billion to $ 656.58 billion for the week ended November 22. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. India’s forex reserves had dropped a record $17.761 billion to $ 657.89 billion in the previous reporting week ending November 15. The reserves, which had hit an all-time high of USD 704.885 billion in end-September, have been declining for multiple weeks.
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.
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For the week ended November 22, foreign currency assets decreased $ 3.043 billion to $ 566.791 billion. Gold reserves increased $ 1.828 billion to $ 67.573 billion during the week.
The special drawing rights (SDRs) were down $ 79 million to $ 17.985 billion. India’s reserve position with the IMF was also down $ 15 million to $ 4.232 billion in the reporting week.
Meanwhile, India’s economic growth slowed to near two-year low of 5.4 per cent in the July-September quarter of this fiscal. The gross domestic product (GDP) had expanded by 8.1 per cent in the July-September quarter of 2023-24 fiscal.
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