India’s Foreign Exchange Reserves Slump By $7.94 Billion, Hit Lowest In Last 2 Years

India’s Foreign Exchange Reserves Slump By $7.94 Billion, Hit Lowest In Last 2 Years

New Delhi: India’s foreign exchange (forex) reserves dipped by $7.94 billion tumbling down to $553.105 billion for the week ended September 2, hitting the lowest level in almost two years as per the data by the Reserve Bank of India, reported news agency ANI. This is the fifth weekly fall in the country’s forex reserves. The forex reserves had dipped by $3.007 billion for the week ended August 26 and by $6.687 billion in the previous week.

The country’s forex has been on a nosedive in recent months as the RBI continues to step in the currency markets to defend the rupee. 

According to the weekly statistical supplement by the Reserve Bank of India, foreign currency assets — the biggest component of the forex reserves — dropped by $6.527 billion to $492.117 billion during the week ended September 2. The foreign currency assets had declined by $2.571 billion in the previous two weeks separately. 

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK’s Pound Sterling and Japanese Yen held in the foreign exchange reserves. 

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All components of the forex reserves declined during the week under review. 

The value of gold reserves dipped by $1.339 billion to $38.303 billion during the week ended September 2.

The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund declined by $50 million to $17.782 billion during the week under review, the RBI data showed. 

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India’s reserve position in the International Monetary Fund (IMF) declined by $24 million to $4.902 billion during the week ended September 2, as per the RBI Weekly Statistical Supplement.