India’s foreign exchange (forex) reserves declined by $2.675 billion to $682.13 billion for the week ended November 1, according to the latest RBI data. In the previous reporting week, the overall reserves had dropped by $3.463 billion to $684.805 billion. Experts are concerned as reserves fall continuously over the past weeks.
India’s gold reserves increased by $1.224 billion to $69.751 billion during the week. The special drawing rights (SDRs) were down by $1 million to $18.219 billion, according to the RBI.
At the end of September, the forex reserves had hit an all-time high of $704.885 billion. However, the reserves fall has been notable in the subsequent weeks.
For the week ended November 1, foreign currency assets, a major component of the reserves, decreased by $3.902 billion to $589.849 billion, the data released on Friday showed. This decline indicates another significant reserves fall.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Consequently, such fluctuations contribute to the reserves fall.
India’s reserve position with the IMF was up by USD 4 million to USD 4.311 billion in the reporting week, the data showed, even as reserves fall continues for other components.
