India’s forex reserves decline $4.38 bn to $690.72 bn

India’s foreign exchange reserves fell by $4.386 billion to $690.72 billion for the week ended August 22, according to the latest data released by the Reserve Bank of India (RBI) on Friday.The reserves had risen by $1.488 billion to $695.106 billion in the preceding reporting week.
Foreign currency assets (FCA), the largest component of the reserves, dropped by $3.652 billion to $582.251 billion during the week. Expressed in U.S. dollar terms, FCA reflects the effect of appreciation or depreciation of non-U.S. currencies such as the euro, pound, and yen held in the reserve basket.Gold reserves also declined, falling by $665 million to $85.003 billion. The central bank further reported that India’s special drawing rights (SDRs) with the International Monetary Fund (IMF) decreased by $46 million to $18.736 billion.Additionally, the country’s reserve position with the IMF slipped by $23 million to $4.731 billion during the week under review.India’s forex reserves, which act as a buffer against external shocks, remain at robust levels even with the latest decline, continuing to provide stability to the rupee and overall macroeconomic fundamentals.

(Business Correspondent)