Mumbai: Foreign exchange reserves of India DECLINED BY $6.052 billion. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. As per RBI data, the reserves declined to $593.477 billion in the week ended on May 19.
Forex reserves surged in the last two weeks. In the week ended on May 12, the overall reserves had increased by $3.5 billion to $599.529 billion. This was their highest level since early June. Forex reserves surged by$7.196 billion to $595.976 billion in the week ended on May 5.
In October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as RBI deploys the kitty to defend the rupee amid pressures caused majorly by global developments.
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 foreign currency assets, declined by $4.654 billion to $524.945 billion. Gold reserves dropped by $1.227 billion to $45.127 billion. The Special Drawing Rights (SDRs) were down by $137 million to $18.276 billion. The country’s reserve position with the IMF was down by $35 million to $5.13 billion.