Forex reserves drop by $3 bn to $603.8 bn in 2nd consecutive weekly decline

The Reserve Bank of India reported on Friday that India’s forex reserves fell by USD 3.165 billion to USD 603.87 billion for the week ending July 28.
This is the second consecutive weekly reduction in reserves, following a USD 1.987 billion drop to USD 607.035 billion the previous reporting week.

The country’s forex reserves reached an all-time high of USD 645 billion in October 2021. The reserves were depleted as the central bank used the funds to defend the rupee against pressures brought on mostly by global events since last year.

According to the RBI’s Weekly Statistical Supplement for the week ending July 28, foreign currency assets, a major component of reserves, fell by USD 2.416 billion to USD 535.337 billion.

Foreign currency assets, expressed in dollars, comprise the effect of appreciation or depreciation of non-US units such as the euro, pound, and yen held in foreign exchange reserves.

According to the RBI, gold reserves fell by USD 710 million to USD 44.904 billion.
The Special Drawing Rights (SDRs) fell by USD 29 million to USD 18.444 billion, according to the apex bank.

The country’s reserve position with the IMF fell by USD 11 million to USD 5.185 billion in the reporting week, according to data from the central bank.

Source:BS