According to data from the Reserve Bank of India (RBI), India’s foreign exchange (forex) reserves fell by $11.17 billion in the week ending April 1, the biggest weekly drop ever recorded, due to a substantial decline in foreign currency holdings. India’s foreign exchange reserves fell by $11.173 billion to $606.475 billion for the week ended April 1, according to the RBI’s weekly data supplement. The country’s foreign exchange reserves have never been so low. The RBI continues to interfere in currency markets through dollar sales to prevent the rupee from losing value amid the Russian-Ukrainian war, with the country’s foreign exchange reserves falling for the fourth straight week.
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. The value of gold reserves fell from $507 million to $42.734 billion during the week under review. The other two components of foreign exchange reserves increased slightly. The value of India’s Special Drawing Rights (SDRs) at the International Monetary Fund (IMF) increased by $58 million to $18.879 billion. India’s reserve position at the IMF increased by $4 million to $5.136 billion in the week ended April 1, according to RBI data.
India’s foreign exchange reserves fell by $2.03 billion to $617.648 billion in the week ended March 25. Foreign exchange reserves have shrunk by more than $26 billion in the last four weeks for which official data is available. The biggest drop was in the country’s foreign currency holdings. India’s foreign currency holdings fell by $10.727 billion to $539.727 billion during the week ended April 1, 2022. Foreign currency assets are the largest component of foreign exchange reserves.
Summary of news:
- India’s foreign exchange reserves fell by $11.17 billion, the biggest drop in history.
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