Forex Reserve Decreased: India’s foreign exchange reserves declined by $ 2.676 billion to $ 593.279 billion in the week ended May 13. The Reserve Bank of India (RBI) gave this information in its data on Friday. In the previous week, foreign exchange reserves had declined by $ 1.774 billion to $ 595.954 billion.
Information found in RBI’s bulletin
According to an article published in the Reserve Bank’s May Bulletin on the state of the economy, the country’s foreign exchange reserves stood at $596 billion on May 6, which was equivalent to the estimated imports for about 10 months of the year 2022-23.
Decrease in foreign currency assets
The reason for the decline in foreign exchange reserves in the reporting week is due to reduction in foreign currency assets, which form a significant component of the total reserves. According to the data, foreign currency assets (FCA) declined by $ 1.302 billion to $ 529.554 billion. Foreign currency assets held in foreign exchange reserves, expressed in dollars, include the effects of appreciation or depreciation in non-US currencies such as the euro, pound and yen.
The value of gold reserves also decreased
According to the data, the value of gold reserves also declined by $ 1.169 billion to $ 40.57 billion in the week ended May 13. In the week under review, special drawing rights (SDRs) with the International Monetary Fund (IMF) declined by $165 million to $18204 billion. The country’s currency reserves kept in the IMF decreased by $ 39 million to $ 4951 billion.