The fall is attributed to a dip in foreign currency assets, which form the largest component of the reserves. These assets saw a reduction in valuation as the dollar strengthened against major global currencies.
India’s foreign exchange reserves declined for the fifth consecutive week, dipping by $2.675 billion to $682.130 billion. This trend may indicate RBI’s market intervention to support the rupee amid currency volatility. Discover how reserve changes impact India’s economy and stability.
In the previous reporting week, the reserves had dropped by USD 3.709 billion to USD 701.176 billion, as per the RBI data.
India's forex reserves dropped $3.709 billion to $701.176 billion for week ended October 4.
So far this year's gains exceed India's cumulative foreign exchange rise in 2023. The rise in foreign exchange reserves, which saw a $71 billion dip in 2022, is significant in preventing the effects of global economic headwinds on the domestic economy.
The apex bank said that gold reserves increased by USD 893 million to USD 60.997 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by USD 118 million to USD 18.459 billion.
Business news: Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
With increased reserves, India is better positioned to manage currency volatility and maintain economic stability amidst global uncertainties. This growth in reserves also reflects the success of India's economic policies and reforms aimed at attracting foreign investments and boosting exports.
The apex bank said gold reserves increased by USD 988 million to USD 56.956 billion during the week. The Special Drawing Rights were down by USD 57 million to USD 18.049 billion.
Following three weeks of successive increase, the Indian foreign exchange reserve registers all time high growth. Earlier in the week ending on April 5, the highest ever forex reserve was achieved with USD 648.562.
Forex reserves are assets that are held by a nation's central bank or monetary authority. It's generally held in reserve currencies, usually US Dollar and, to a lesser degree, Euro, Japanese Yen, and Pound Sterling.
India's forex reserves jumped to hit a fresh peak of USD 648.56 billion, RBI said on Friday.
Business news: According to the Reserve Bank of India, Gold reserves increased USD 673 million to USD 52.16 billion during the week. The Special Drawing Rights were down USD 73 million to USD 18.145 billion, the apex bank added.
Business news: RBI said the gold reserves increased by USD 347 million to USD 51.487 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by USD 57 million to USD 18.219 billion.
Business news: Gold reserves during the week rose from USD 425 million to USD 51.140 billion. In the calendar year 2023, the RBI added about USD 58 billion to its foreign exchange kitty.
Business news: Forex reserves or foreign exchange reserves (FX reserves), are assets that are held by a nation's central bank or monetary authority.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves. Gold reserves were up USD 446 million to USD 47.577 billion during the week, the RBI said.
The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.
Business news: In October 2021, the country's foreign exchange reserves touched an all-time high of about USD 645 billion. Much of the decline can be attributed to RBI's recent intervention and a rise in the cost of imported goods.
Forex reserves India: The Indian rupee has been weakening over the past few weeks to hit fresh new all-time lows as the US dollar strengthened against major global currencies.
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