India’s forex reserves slump by $4.05 billion

Mumbai: India’s foreign exchange (forex) reserves slumped by $4.05 billion to $312.70 billion for the week ended Sep 23, due to a sharp drop in the value of foreign currency assets, official data showed.

The country’s foreign exchange reserves kitty has declined by $8.08 billion in the last three weeks after rising to an all-time high of $320.78 billion for the week ended Sep 2.

The forex reserve kitty had risen by $266 million for the week ended Sep 16 after declining by $4.29 billion in the previous week. Thus the forex reserves has registered a fall of $8.08 billion in the last three weeks under review.

Foreign currency assets, the biggest component of the forex reserves kitty, fell by $3.97 billion to $276.93 billion during the week under review, according to the weekly statistical supplement of the Reserve Bank of India (RBI), the country’s central bank.

The foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the pound sterling, euro and yen held in reserve.

The value of special drawing rights (SDRs) dropped by $52 million to $4.49 billion and reserves with the International Monetary Fund (IMF) declined by $35 million to $2.95 billion.

However, gold reserves remained unchanged at $28.32 billion.


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