India’s forex reserves drop by $5.68 billion to $561.26 billion

This is the third consecutive week of a drop in the reserves after the USD 8.319 billion decrease in the previous reporting week to USD 566.948 billion. In October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion.

The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. For the week ended February 17, the foreign currency assets, a major component of the reserves, decreased by USD 4.515 billion to USD 496.072 billion, according to the Weekly Statistical Supplement released by the RBI.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves decreased for the third week running and were USD 1.045 billion down to USD 41.817 billion, the RBI said.

The Special Drawing Rights (SDRs) were also down by USD 87 million to USD 18.267 billion, the apex bank said. The country’s reserve position with the IMF was down by USD 34 million to USD 5.111 billion in the reporting week, the apex bank data showed.