Foreign exchange reserves fell by $ 2 billion to $ 652.86 billion, RBI released data
Forex Reserves: Foreign exchange reserves have been declining for the past few weeks and the reason for this decline is believed to be the revaluation as well as the intervention in the foreign exchange market by the RBI to reduce the volatility in the rupee. Let's know what the figures released by the RBI say.
India's foreign exchange reserves declined by $ 1.988 billion to $ 652.869 billion during the week ended December 13. RBI gave this information on Friday. The overall foreign exchange reserves fell by US $ 3.235 billion to US $ 654.857 billion in the previous week.
Foreign exchange reserves have been falling for a few weeks now and the reasons seen for such decline are revaluation along with the intervention in the foreign exchange market by the RBI, which tried to reduce the volatility that was seen in the rupee. It once increased to an all-time high, in September, at US$ 704.885 billion.
Within the foreign exchange reserves, foreign currency assets a key constituent- declined by $3.047 billion to $562.576 billion in the week ended December 13, the data showed. Foreign currency assets expressed in dollar terms include the effects of appreciation or depreciation of non-dollar currencies such as euro, pound, and yen held in the foreign exchange reserves.
The RBI said gold reserves rose by $1.121 billion to $68.056 billion during the week. The apex bank said special drawing rights (SDRs) declined by US$35 million to US$17.997 billion. According to the apex bank data, India's reserve position with the IMF also declined by US$27 million to US$4.24 billion in the week under review.
