MUMBAI: India’s forex reserves fell by $1.88 billion to $623.983 billion in the week ended January 17, as the Reserve Bank of India (RBI) intervened in the forex market to curb volatility in the rupee.
This marks the second consecutive week of decline, with reserves having dropped by $8.714 billion to $625.871 billion in the previous week.
All-time high
The reserves, which had hit an all-time high of $704.885 billion at the end of September, have been steadily declining due to revaluation and RBI’s measures to stabilize the currency.
For the reporting week, foreign currency assets, which make up the largest component of reserves, shrank by $2.878 billion to $533.133 billion, RBI data showed.
These assets, expressed in dollar terms, include the impact of fluctuations in the value of non-dollar currencies like the euro, pound, and yen.
Meanwhile, gold reserves rose by $1.063 million to $68.947 billion, and Special Drawing Rights (SDRs) edged up by $1 million to $17.782 billion.
India’s reserve position with the International Monetary Fund (IMF), however, decreased by $74 million to $4.122 billion during the same period.
The ongoing decline in forex reserves underscores the RBI’s proactive efforts to manage rupee volatility amid global economic uncertainties.
