India's Forex reserves drop for 2nd week, down $2 bn to $652.86 bn

India's foreign exchange reserves declined by $1.98 billion to $652.87 billion as of December 13, highlighting the Reserve Bank of India's ongoing measures to stabilize the rupee and ensure market stability. Despite this drop, the reserves had crossed the $700 billion mark earlier, making India the fourth-largest reserve holder globally.
Foreign currency assets (FCA), which constitute a significant portion of the reserves, saw a notable decrease of USD 3.047 billion, bringing the total to USD 562.576 billion, according to information. The FCA figures, expressed in US dollar terms, account for the valuation of non-US currencies such as the euro, pound, and yen within the reserve portfolio.
Gold reserves, however, provided a positive note, rising by USD 1.121 billion to reach USD 68.056 billion during the week. The increase in gold holdings highlights India's strategy to maintain a diversified reserve base amidst global uncertainties.The Special Drawing Rights (SDRs) allocated by the International Monetary Fund (IMF) dropped by USD 35 million, now standing at USD 17.997 billion. Simultaneously, India's reserve position with the IMF contracted by USD 27 million to settle at USD 4.24 billion,stated official report.

(Business Correspondent)