Mumbai: The foreign exchange (forex) reserves of the country touched the lowest level in almost two years. The weekly statistical supplement data released by Reserve Bank of India (RBI) revealed this. The forex reserves dipped by $2.234 billion to $550.871 billion for the week ended September 9. It was at $553.105 billion. The decline in the foreign currency assets (FCAs) is the main reason for this.
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.
The FCAs decreased by $2.519 billion to $489.598 billion. The value of the gold reserves increased by $40 million to $38.644 billion. The Special Drawing Rights (SDRs) dropped by $63 million to $17.719 billion. The country’s reserve position with the IMF was up by $8 million to $4.91 billion.
As per RBI, this is the sixth weekly fall in the forex reserves. India’s forex has fallen for 23 of the 29 weeks since Russia invaded Ukraine in late February. India lost around $80 billion during this period. It has fallen more than $89 billion from its peak in late October last year. India’s forex reserves are the fourth largest globally.