The country’s forex reserve is continuously shrinking, with the overall reserves declining by $8.134 billion to $537.518 billion in last week. The forex reserves had declined by over $5.2 billion to $545.54 billion in the previous week.
According to the Weekly Statistical Supplement released by the RBI, the fall in the reserves was due to a dip in the foreign currency assets (FCA), a major component of the overall reserves. FCA is pressed in dollar terms.
The foreign currency assets decreased by $7.688 billion to $477.212 billion during the reporting week. The FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
The value of the gold reserves decreased by $300 million to $37.886 billion. The Special Drawing Rights (SDRs) dropped by USD 93 million to USD 17.594 billion. The country’s reserve position with the IMF was down by USD 54 million to USD 4.826 billion in the reporting week.
