Foreign exchange reserves decrease by 5,008 billion to 588,314 billion RBI data

The country’s foreign exchange reserves fell by $5.008 billion to $588.314 billion in the week ending July 1, according to RBI data released on Friday.

In the previous week ended June 24, reserves had increased by $2.734 billion to $593.323 billion.

During the reporting week ended July 1, the decline in foreign exchange reserves was due to a decline in foreign currency holdings (FCA), a major component of overall reserves, as well as gold reserves.

FCA declined by $4.471 billion to $524.745 billion in the week ended July 1, according to the weekly statistical supplement, released by the Reserve Bank of India (RBI) on Friday.

Expressed in dollars, the FCA includes the effect of the appreciation or depreciation of non-US units such as the euro, the pound and the yen held in foreign exchange reserves.

Gold reserves fell by $504 million to $40.422 billion in the reporting week.

During the reporting week ended July 1, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) fell by $77 million to $18.133 billion, RBI said.

The country’s reserve position with the IMF rose by $44 million to $5.014 billion in the reporting week, the data showed.

Earlier this week, RBI announced a series of measures aimed at improving foreign exchange inflows to boost the rupee which has fallen against the US dollar.

(PTI)