January 3rd 2025.
Mumbai: The Reserve Bank of India announced on Friday that India's foreign exchange reserves have decreased by USD 4.112 billion to USD 640.279 billion in the week that ended on December 27. This follows a previous drop of USD 8.478 billion in the previous reporting week, bringing the overall kitty to USD 644.391 billion.
It is worth noting that the country's reserves have been on a downward trend for the past few weeks, with the drop being attributed to revaluation and interventions in the forex market by the RBI in an effort to reduce volatility in the rupee. These reserves had reached an all-time high of USD 704.885 billion at the end of September.
The data released on Friday showed that for the week ending on December 27, foreign currency assets, which make up a significant portion of the reserves, decreased by USD 4.641 billion to USD 551.921 billion. This includes the impact of the appreciation or depreciation of non-US units such as the euro, pound, and yen that are held in the foreign exchange reserves.
On a more positive note, the RBI reported that gold reserves have increased by USD 541 million to USD 66.268 billion during the week. However, the Special Drawing Rights saw a decrease of USD 12 million to USD 17.873 billion, as stated by the apex bank.
The data released by the RBI also revealed that India's reserve position with the IMF remained unchanged at USD 4.217 billion in the reporting week. This shows that the country continues to maintain a strong position in terms of its reserves.
Overall, while there has been a decline in India's forex reserves in recent weeks, the country still holds a substantial amount in its reserves, which is important for maintaining stability in the rupee and the economy as a whole.
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