India’s foreign exchange (forex) reserves declined by $325 million to $560.94 billion for the week ended February 24, registering a fall for the fourth straight week, as per the RBI data released on Friday.
The country’s forex kitty witnessed mild fall during the week ended February 24 after registering sharp decline in the previous three weeks.
The forex reserves had slumped by $5.68 billion during the week ended February 17 and $8.31 billion in the previous week. This was the period when the Indian rupee was under pressure amid outflow of funds by foreign institutions. This prompted the RBI to sell dollars to prevent weakness in the rupee.
As per the weekly statistical supplement released by the RBI, all components of the forex reserves declined during the week ended February 24.
The foreign currency assets, the biggest component of the forex reserves, fell by $166 million to $495.90 billion. The foreign currency assets had dipped by $4.51 billion in the previous week. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US currencies like pound, euro and yen held in the forex reserves.
The value of gold reserves declined by $66 million to $41.75 billion. Special Drawing Rights (SDRs) fell by $80 million to $18.18 billion and India’s reserve position with the International Monetary Fund (IMF) dropped by $12 million to $5.09 billion during the week under review.
(Published 03 March 2023, 13:22 IST)
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