Mumbai: Foreign exchange reserves of India fell for the seventh consecutive week. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
As per data, India’s forex reserves dropped by $1.88 billion to $623.983 billion in the week ended January 17. Earlier, the overall kitty declined by $8.714 billion to $625.871 billion in the week ended January 10. The forex reserves touched a 10-month low in the week ended on January 10.
The country’s forex reserves had dropped by $5.6 billion for the week ending January 3 and had settled at $634.58 billion. 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.
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The forex reserves had increased to an all-time high of $704.885 billion in end-September. Foreign exchange reserves have declined by almost $80 billion since reaching an all-time high of $705 billion for the week ended September 27.
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 January 17, foreign currency assets, decreased by $2.878 billion to $533.133 billion. Gold reserves increased by $1.063 million to $68.947 billion during the week. The Special Drawing Rights (SDRs) were up by $1 million to $17.782 billion. India’s reserve position with the IMF was down by $74 million at $4.122 billion in the reporting week.
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