India's Forex Reserves Decline by $2.5 Billion After Three-Week Rise Foreign currency assets (FCA), which constitute the largest share of the reserves, recorded a sharp fall of $4.515 billion, bringing the total down to $539.591 billion
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
India's foreign exchange reserves saw a decline of $2.54 billion for the week ending February 14, settling at $635.721 billion, according to the latest data released by the Reserve Bank of India (RBI) on Friday. This drop marks the end of a three-week upward trend, which previously saw an increase of $7.654 billion in the preceding week, bringing reserves to $638.261 billion.
The country's forex reserves had reached an all-time high of $704.885 billion in September last year before witnessing a decline due to RBI's strategic interventions in the foreign exchange market. These measures were aimed at stabilizing the rupee amid global financial volatility and ensuring liquidity in the system.
Foreign currency assets (FCA), which constitute the largest share of the reserves, recorded a sharp fall of $4.515 billion, bringing the total down to $539.591 billion. The valuation of these assets, measured in dollar terms, also factors in fluctuations in major global currencies such as the euro, pound, and yen.
On the other hand, gold reserves provided some relief by increasing by $1.942 billion, bringing their total valuation to $74.15 billion. The rise in gold reserves signals the RBI's diversification strategy amid uncertain global economic conditions.
Additionally, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $19 million to $17.897 billion, while India's reserve position with the IMF saw a modest increase of $14 million, reaching $4.083 billion.
As global markets remain unpredictable, the RBI's continued vigilance in managing forex reserves will be crucial in maintaining financial stability.
