Last Update: 29 October 2022, 13:42 IST
India’s forex kitty reached an all-time high of $645 billion in October 2021.
Forex reserves depleting as central bank deploys kitty to protect rupee amid major pressure on global growth
The Reserve Bank of India on Friday said that India’s foreign exchange reserves declined by $ 3.847 billion to $ 524.52 billion for the week ended October 21. Total reserves fell by $4.50 billion to $528.37 billion in the last reporting week, and have been declining for several months now.
In October 2021, the country’s foreign exchange kitty reached an all-time high of $645 billion. Reserves are falling as the central bank deploys kitty to protect the rupee amid major pressure on account of global growth. Foreign exchange assets (FCAs), a major component of the overall reserves, saw a decline of $465.075 billion during the week to $3.593 billion on October 21, according to the weekly statistical supplement released by the RBI on Friday.
Expressed in dollar terms, foreign currency 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 fell by $247 million to $37206 billion.
The apex bank said the special drawing rights (SDRs) increased by $7 million to $17.44 billion. Central bank data showed the country’s reserve position with the IMF declined by $14 million to $4.799 billion in the week under review.
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