Mumbai: Foreign exchange reserves of India fell for the fifth consecutive week. The forex reserves touched a 10-month low of $634.59 billion in the week ended on January 3. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
As per RBI data, India’s forex reserves dropped by $5.693 billion to $634.585 billion in the week ended January 3. In the previous reporting week, the overall kitty had declined by $4.112 billion to $640.279 billion. The forex reserves fell by $4.112 billion to $640.279 billion during the week ended December 27. In the previous reporting week, the overall kitty had dropped $8.5 billion to $644.39 billion. This was the biggest weekly fall in over a month. They had declined by a total of $5.2 billion in the prior two weeks. The forex reserves had increased to an all-time high of $704.885 billion in end-September.
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.
For the week ended January 3, foreign currency assets decreased by $6.441 billion to $545.48 billion. Gold reserves increased by $824 million to $67.092 billion during the week. The Special Drawing Rights (SDRs) were down by $58 million to $17.815 billion. India’s reserve position with the IMF was down by $18 million at $4.199 billion in the reporting week.
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