Mumbai: The Foreign exchange reserves of the country fall by $2.238 billion to $570.74 billion in the week ended August 12. The weekly statistical supplement data released by Reserve Bank of India (RBI) revealed this. Forex reserves was at $572.978 billion in the week ended August 5. As per the data, dip in the Foreign Currency Assets (FCA) is the main reason for the fall in the foreign exchange reserves.
As per the apex bank, this was the largest fall of the forex reserves in a month. India’s forex reserves are the fourth largest globally. Since Russia invaded Ukraine, India’s forex reserves have fallen for 19 weeks out of a total of 25. India lost around $61 billion during this period.
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). 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.
FCA declined $2.652 billion to $506.994 billion. Gold reserves surged $305 million to $40.618 billion. The Special Drawing Rights (SDRs) increased $102 million to $18.133 billion. The country’s reserve position with IMF also rose by $7 million to $4.994 billion.