India’s Forex Drops to $529.99 Bn After Decline In Gold Reserves
The primary reason is decline in India’s gold’s reserves. This comes after the biggest jump of 2022 which ended on October 28 last week, when the reserves swelled to $531.08 Bn
India’s forex reserves have dropped $1.09 Bn during the week ended November 4 to $529.99 Bn. The primary reason is decline in India’s gold’s reserves. This comes after the biggest jump of 2022 which ended on October 28 last week, when the reserves swelled to $531.08 Bn.
In October 2021, the country’s forex had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused by global developments. Foreign currency assets (FCA), a major component of the overall reserves, decreased by $120 Mn to $470.727 Bn during the week according to RBI. 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.
RBI also said the gold reserves dropped by $705 million to $37.057 billion. India’s reserve position with the International Monetary Fund also dipped by $27 million to $4.82 billion in the reporting week, while the special drawing rights were down by $235 million to $17.39 billion. Further, the country’s reserve position with the International Monetary Fund also dipped by $27 million to $4.82 billion in the reporting week. The forex reserves have been falling due to the capital outflow amid recession concerns and the RBI has spent a significant amount to shore up the rupee. The domestic currency has declined about 9 per cent during the current calendar year.
