India’s forex reserves decline by $1.494 billion to reach $575.267 billion

India’s foreign exchange reserves fell by USD 1.494 billion to USD 575.267 billion as of February 3, breaking a three-week upward trend, according to RBI statistics released on Friday.

According to Reserve Bank of India (RBI) figures issued on Friday, India’s foreign exchange reserves fell by USD 1.494 billion, totaling USD 575.267 billion as of February 3. The reserves climbed by USD 3.03 billion in the preceding reporting period, totaling USD 576.76 billion, bringing the three-week increasing trend to an end.

India’s foreign exchange reserves will reach an all-time high of $645 billion in October 2021. However, the reserves have been dwindling as the central bank uses them to maintain the rupee in reaction to global events.

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According to the Reserve Bank of India’s (RBI) Weekly Statistical Supplement for the week ending February 3, foreign currency assets, which make up a large portion of reserves, fell by $1.323 billion to $507.695 billion.

Foreign currency assets represented in dollars take into account the appreciation or depreciation of non-US currencies held in foreign exchange reserves, such as the euro, pound, and yen.

The RBI also revealed that gold reserves fell by $246 million to $43.781 billion following a string of continuous rises.

According to the RBI, SDRs climbed by $66 million to $18.544 billion, while the country’s reserve position with the International Monetary Fund (IMF) improved by $9 million to $5.247 billion during the reporting week.