Forex Update: India’s foreign exchange reserves fall by $2.79 billion to $616.14 billion

India’s foreign exchange reserves fell by $2.79 billion to $616.14 billion in the week ended January 19, according to the latest RBI data. In the last week, the country’s foreign exchange reserves had increased by $ 1.6 billion to $ 618.94 billion.

The country’s foreign exchange reserves reached an all-time high of $645 billion in October 2021. The central bank had deployed funds to protect the rupee amid pressure from global growth since last year, which hit the reserves.

For the week ended January 19, foreign currency assets (FCA) – a key component of reserves – fell $2.6 billion to $545.8 billion, according to the RBI’s weekly statistical supplement.

Expressed in dollar terms, foreign exchange assets include the effect of appreciation or depreciation of non-US units such as the euro, pound and yen held in foreign exchange reserves.

Gold reserves declined by $34 million to $47.2 billion, while special drawing rights (SDRs) declined by $476 million to $18.2 billion.

India’s reserve position with the IMF declined by $18 million to $4.85 billion.