India’s foreign exchange reserves experienced a notable dip of $711 million to $681.61 billion for the week ending June 5, primarily due to a sharp decline in foreign currency assets, as reported by the RBI.
Illustration: Dado Ruvic/Reuters
Key Points
- India’s forex reserves saw a decline of $711 million, settling at $681.61 billion for the week ending June 5.
- The primary factor for this drop was a $2.70 billion decrease in foreign currency assets, bringing them to $543.44 billion.
- Conversely, the value of gold reserves experienced a notable increase of $1.97 billion, reaching $114.57 billion.
- Special Drawing Rights (SDRs) and India’s reserve position with the IMF also saw minor increases during the reporting week.
India’s forex reserves dropped $711 million to $681.61 billion during the week ended June 5 due to a sharp decline in foreign currency reserves, the RBI said on Friday.
Components of Forex Reserves
In the previous reporting week, the overall reserves had jumped $938 million to $682.32 billion.
For the week ended June 5, foreign currency assets — a major component of the reserves — was down $2.70 billion to $543.44 billion, the data released by the Reserve Bank of India (RBI) showed.
Expressed in dollar terms, foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
Gold Reserves and Other Holdings
However, the value of gold reserves increased $1.97 billion to $114.57 billion during the week, the RBI said.
The special drawing rights (SDRs) were up $18 million to $18.76 billion, the RBI said.
India’s reserve position with the IMF stood at $4.83 billion in the reporting week, it added.
