India’s Forex Reserves Drop $2.06 Billion After Eight-Week Gain Streak

New Delhi [India], May 10 (ANI): In India,

foreign exchange reserves

(

Forex

) dropped to $686.06 billion from $708.12 billion in the week ending May 2, following eight consecutive weeks of increases, according to official data published by the Reserve Bank of India.

RBI

) this week showed.

India’s

Forex

rose by $1.983 billion to reach $688.129 billion in the week ending on April 25.

According to the apex bank’s data for the reporting period, foreign currency assets rose by USD 514 million, reaching USD 581.177 billion.

The FCAs constitute the biggest part of the system.

foreign exchange reserves

This demonstrates the valuation effect of non-US currencies such as the euro, pound, and yen held in the reserves, expressed in dollar terms.

The

gold reserves

Also saw a decrease of $2.545 million, dropping to $81.82 billion during the reporting period.

The Special Drawing Rights (SDRs), held with the International Monetary Fund (IMF), also experienced a reduction of $30 million, bringing their value down to $18.558 billion, as reported by the organization.

RBI

data.

The foreign exchange reserves began decreasing after hitting their peak at $704.89 billion in September but later managed to recuperate. This drop in reserves was probably because of

RBI

The intervention aims to prevent a significant devaluation of the Rupee. Currently, the Indian Rupee is trading at or close to its historical lowest level relative to the US dollar.

A projection from the central bank indicates that for India,

foreign exchange reserves

Are adequate enough to encompass roughly 10-12 months of anticipated import needs.

In 2023, India saw an addition of approximately USD 58 billion to its total.

foreign exchange reserves

, in contrast to a total decrease of USD 71 billion in 2022.

In 2024, the reserves increased by slightly more than $20 billion. Foreign exchange reserves, known also as FX reserves, consist of assets held by a country’s central bank or monetary authority, mainly in major global currencies like the U.S. dollar, along with lesser amounts in euros, Japanese yen, and British pounds.

The

RBI

frequently steps in by controlling liquidity, such as selling dollars, to stop sharp declines in the value of the Rupee. The central bank purchases dollars when the currency is robust and sells them off when it becomes weaker. (ANI)