Mumbai: The foreign exchange reserves of the country slipped down by $ 2.676 billion to $ 593.279 billion for the week ended May 13. The weekly statistical supplement released by the Reserve Bank of India (RBI) has revealed this. According to RBI, all the components of the forex reserves declined during the week ended May 13 led by a sharp drop in the foreign currency assets.
This is 10th straight week of declines for the forex reserves. The forex reserves fell below the $ 600-billion-mark earlier on May 28, 2021. This is the lowest level of India’s forex reserves in a year. India’s forex reserves have fallen sharply after touching an all-time high of $ 642.453 billion on September 3, 2021.
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 $ 1.302 billion to $ 529.554 billion.
Gold reserves depreciated by $ 1.169 billion to $ 40.57 billion. India’s special drawing rights (SDRs) with the IMF slipped by $ 165 million to $ 18.204 billion. The country’s reserve position in IMF dipped by $ 39 million to $ 4.951 billion.