India’s foreign exchange reserves plunged $4.531 billion to 629.755 billion in January: RBI

During the last week, the decline in the reserves was because of a plunge in the foreign currency assets (FCAs).

The country’s foreign exchange reserves plunged by USD 4.531 billion to stand at USD 629.755 billion in the last week ended January 28, RBI data revealed on Friday. Earlier, in the week ended on January 21, the reserves had fallen by USD 678 million to USD 634.287 billion. It reached a lifetime high of USD 642.453 billion in the week ended September 3, 2021.

During the last week, the decline in the reserves was because of a plunge in the foreign currency assets (FCAs), a major element of the overall reserves, and gold reserves. However, as per weekly data by the Reserve Bank of India (RBI), FCAs fell by USD 3.504 billion to USD 566.077 billion.

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Indicated in dollars, the foreign currency assets comprise the impact of appreciation or depreciation of non-US units like the euro, pound and yen carried in the foreign exchange reserves. Gold reserves dropped by USD 844 million to USD 39.493 billion in the last week.

Additionally, the report also stated that special drawing rights (SDRs) with the International Monetary Fund (IMF) also decreased by USD 141 million to reach USD 19.011 billion. The country’s reserve position with the IMF too plunged by USD 42 million to USD 5.174 billion.