India’s foreign exchange reserves fall by $7.94 billion to a two-year low

New Delhi: India’s foreign exchange (forex) reserves fell by $7.94 billion to $553.105 billion for the week ended September 2, hitting the lowest level in nearly two years according to data from the Reserve Bank of India, news agency ANI reported. This is the fifth weekly drop in the country’s foreign exchange reserves. Foreign exchange reserves had fallen by $3.007 billion for the week ended August 26 and by $6.687 billion the previous week.

The country’s forex has plunged in recent months as the RBI continues to intervene in the foreign exchange markets to defend the rupee.

According to the Reserve Bank of India’s weekly statistical supplement, foreign currency holdings – the largest component of foreign exchange reserves – fell by $6.527 billion to $492.117 billion in the week ended September 2. Foreign currency holdings were down $2.571 billion in the previous two weeks separately.

Expressed in US dollars, foreign currency assets include the effect of the appreciation or depreciation of non-dollar currencies such as the euro, British pound sterling and Japanese yen held in foreign exchange reserves.

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All components of foreign exchange reserves fell during the week under review.

The value of gold reserves fell $1.339 billion to $38.303 billion in the week ended September 2.

The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund fell by $50 million to $17.782 billion in the week under review, according to RBI data.

India’s reserve position at the International Monetary Fund (IMF) decreased by $24 million to $4.902 billion in the week ended September 2, according to the RBI Weekly Statistical Supplement.