Mumbai: The foreign exchange reserves of the country slipped down by $ 1.774 billion to $ 595.954 billion for the week ended May 6. The weekly statistical supplement released by the Reserve Bank of India (RBI) has revealed this. In the previous reporting week, the overall reserves had declined by $ 2.695 billion to $597.728 billion, falling below the $ 600 billion mark.
This is 9th straight week of declines for the forex reserves. The forex reserves r fell below the $ 600-billion-mark earlier on May 28, 2021. The foreign exchange reserves declined by $ 28.05 billion in the six months to March 2022.
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The foreign exchange reserves of the country comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the country’s reserve position with the International Monetary Fund (IMF). As per RBI, the decline in the Foreign Currency Assets (FCA) and gold reserves is the reason for the downfall.
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 down by $ 1.968 billion to $ 530.855 billion
Gold reserves surged by $ 135 million to $ 41.739 billion. India’s special drawing rights (SDRs) with the IMF gained by $ 70 million to $ 18.370 billion. The country’s reserve position in IMF dipped by $ 11 million to $ 4.99 billion.