India’s Forex Reserves Decline by $711 Million to $681.61 Billion
India’s foreign exchange reserves declined by USD 711 million to USD 681.610 billion during the week ended June 5, according to data released by the Reserve Bank of India (RBI) on Friday. The fall comes after the country’s forex reserves had registered an increase of USD 938 million in the previous reporting week, reaching USD 682.321 billion.
The decline was primarily driven by a sharp drop in foreign currency assets (FCAs), which constitute the largest component of the reserves. FCAs fell by USD 2.704 billion to USD 543.444 billion during the reporting week. The RBI noted that foreign currency assets, expressed in dollar terms, reflect the impact of fluctuations in the value of non-US currencies such as the euro, pound sterling, and Japanese yen held in the reserves.
Meanwhile, gold reserves provided some support to the overall reserve position, rising by USD 1.975 billion to USD 114.575 billion. The value of Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by USD 18 million to USD 18.765 billion, while India’s reserve position with the IMF stood at USD 4.826 billion during the week under review.
Pic Courtesy: google/ images are subject to copyright
