India’s Forex Reserves Dip By $2.6 Billion; 10th Weekly Fall

India’s foreign exchange (forex) reserves declined by $2.676 billion to $593.279 billion for the week ended May 13, the Reserve Bank of India (RBI) data showed on Friday.

This is the 10th weekly drop in the country’s foreign exchange reserves. During the week ended on May 6, the forex reserves had dipped by $1.77 billion.

This is the lowest level of India’s forex reserves in a year. India’s forex reserves have fallen sharply after touching an all-time high of $642.453 billion on September 3, 2021.

According to the Reserve Bank of India’s weekly statistical supplement, all the components of the forex reserves declined during the week ended May 13 led by a sharp drop in the foreign currency assets.

India’s foreign currency assets, which are the biggest component of the forex reserves, fell by $1.302 billion to $529.554 billion during the week under review, the RBI data showed.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK’s Pound Sterling and Japanese Yen held in the foreign exchange reserves.

The value of gold reserves slumped by $1.169 billion to $40.57 billion during the week under review.

India’s reserve position in the International Monetary Fund (IMF) dropped by $39 million to $4.951 billion, and the value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund dipped by $165 million to $18.204 billion during the week ended May 13, the RBI data showed. (ANI)