Mumbai: The foreign exchange reserves of the country declined by $1.466 billion to $633.614 billion for the week ended December 31. The weekly statistical supplement released by the Reserve Bank of India (RBI) has revealed this.
As per RBI, the decline in foreign currency assets (FCAs) is the reason for this depreciation of forex reserve. The foreign exchange reserves of the country comprise foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs), and the country’s reserve position with the International Monetary Fund (IMF).
FCA is the largest component of the forex reserves. It includes the effect of appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves. FCAs slipped by $1.480 billion to $569.889 billion.
The value of the country’s gold reserves also surged by $14 million to $39.405 billion. The SDR value remain unchanged at$19.114 billion. The country`s reserve position with the IMF also remained firm at $5.207 billion.