India’s forex kitty declines by $1.32 bn to $593.75 bn

India’s forex reserves dropped by $1.318 billion to $593.749 billion for the week ended June 9, the Reserve Bank of India said on June 16.
| Photo Credit: The Hindu

India’s forex reserves dropped by $1.318 billion to $593.749 billion for the week ended June 9, the Reserve Bank of India said on June 16.

The overall reserves had jumped by $5.93 billion to $595.067 billion for the previous reporting week.

It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of $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 June 9, the foreign currency assets, a major component of the reserves, decreased by $1.128 billion to $525.073 billion, according to the Weekly Statistical Supplement released by the RBI on Friday.

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 dropped by $183 million to $45.374 billion, the RBI said.

The Special Drawing Rights (SDRs) were up by $2 million to $18.187 billion, the apex bank said.

The country’s reserve position with the IMF was down by $8 million to $5.115 billion in the reporting week, the apex bank data showed.