Updated January 15th, 2024 at 12:22 IST

Forex reserves witness sharp drop, decrease by $5.89 billion: RBI

Foreign currency assets, the largest component of the reserves, witnessed a decline of $4.96 billion, settling at $546.65 billion.

Reported by: Business Desk
Asian forex reserves slip | Image:Pexels
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India's forex kitty: India's foreign exchange reserves witnessed a notable decline, plummeting by $5.89 billion to reach $617.3 billion for the week ending January 5, the latest data released by the Reserve Bank of India (RBI) showed. This reversal comes after a four-week consecutive increase in reserves.

In the current fiscal year, the forex reserves have seen a net addition of $55.72 billion, marking a substantial increase, according to the RBI. In the prior reporting week concluding on December 29, reserves had risen by $2.759 billion to reach $623.2 billion, representing the highest level recorded so far in the fiscal year. The week before that saw an increase of $4.471 billion, bringing the reserves to $620.441 billion.

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The forex reserves had hit an all-time high of $645 billion in October 2021 but have since faced challenges as the central bank intervened to defend the rupee amidst pressures arising from global developments.

Foreign currency assets, the largest component of the reserves, witnessed a decline of $4.96 billion, settling at $546.65 billion. Gold reserves also saw a decrease of $839 million, amounting to $47.48 billion during the reporting week. Special Drawing Rights (SDRs) were down by $67 million, reaching $18.29 billion, as per the RBI's statement.

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Additionally, the country's reserve position with the International Monetary Fund (IMF) reported a decline of $26 million, reaching $48.66 billion in the reporting week. The fluctuations in India's forex reserves underscore the impact of global economic dynamics and efforts to maintain stability in the currency market.

(With PTI inputs)
 

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Published January 13th, 2024 at 13:06 IST