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India’s foreign exchange reserves witnessed a significant decline of $18.34 billion, reaching $747.56 billion for the week ended September 25, as reported by the Reserve Bank of India.
Illustration: Dado Ruvic/Reuters
Key Points
- India’s forex reserves decreased by $18.34 billion to $747.56 billion in the week ending September 25.
- This follows a previous decline of $14.88 billion, bringing the total down from an an all-time high of $785.71 billion.
- Foreign currency assets, a major component, saw a reduction of $15.57 billion, reaching $615.41 billion.
- The value of gold reserves also fell by $2.59 billion to $108.7 billion.
- Special Drawing Rights (SDRs) and India’s reserve position with the IMF also registered declines.
India’s forex reserves dropped $18.34 billion to $747.56 billion during the week ended September 25, the Reserve Bank said on Friday.
Previous Trends and Components
In the previous reporting week, the kitty had declined $14.88 billion to $765.9 billion.
The reserves had touched an all-time high of $785.71 billion for the week ended September 4 on the back of a heavy flow of currency as part of a special concessional swap for deposits from the diaspora through which banks raised a record sum of over $130 billion.
For the week ended September 25, foreign currency assets, a major component of reserves, decreased by $15.57 billion to $615.41 billion, according to the data released by the Reserve Bank of India (RBI).
Impact of Currency Fluctuations
Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in foreign exchange reserves.
The value of gold reserves decreased $2.59 billion to $108.7 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) were down $97 million to $18.64 billion, the apex bank said.
India’s reserve position with the IMF decreased $86 million and stood at $4.8 billion.
