Mumbai: Foreign exchange reserves of India touched 7- month low, in the week ended December 20. The forex reserves is declining for a third consecutive week. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
As per RBI data, forex reserves fell by $8.5 billion to $644.39 billion during the week. This is the biggest weekly fall in over a month. They had declined by a total of $5.2 billion in the prior two weeks.
The reserves stood at $655 billion in the week ended December 6. In the previous reporting week, the reserves had declined by Rs 3.235 billion to Rs 654.857 billion, and have declined by $52 billion from the record high of $704.89 billion hit on September 27.
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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.
For the week ended December 20, foreign currency assets, decreased by $6.014 billion to $556.562 billion. Gold reserves decreased by $2.33 billion to $65.726 billion during the week. The Special Drawing Rights (SDRs) were down by $112 million to $17.885 billion. India’s reserve position with the IMF was also down by $23 million to $4.217 billion in the reporting week.
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