Forex reserves falls by $2.36 billion to $583.53 billion

Foreign exchange reserves experienced a decline of $2.36 billion, to $583.53 billion, according to the data released by the Reserve Bank of India (RBI).

In the previous week, the reserves had seen an increase of $1.153 billion at $585.895 billion. Notably, in October 2021, the country’s foreign exchange reserves reached an all-time high of $645 billion. However, these reserves have since been utilised by the central bank to support the Rupee against pressures stemming largely from global developments that have persisted since last year.

In the week ending on October 20, the foreign currency assets, a significant component of the reserves, decreased by $4.15 billion to $515.2 billion. This figure accounts for the impact of fluctuations in the value of non-US currencies such as the euro, pound, and yen held within the foreign exchange reserves.

Gold reserves, on the other hand, increased by $1.85 billion during that same week, reaching $45.42 billion, as per the RBI's report. Additionally, the Special Drawing Rights (SDRs) experienced a decrease of $70 million, ending up at $17.93 billion, according to the central bank.

The country's reserve position with the International Monetary Fund (IMF) showed a minor increase of $6 million, bringing it to a total of $4.98 billion for the reporting week, as indicated by the apex bank's data.

(With PTI Inputs)