After two consecutive weeks of increases, India’s foreign exchange (forex) reserves fell by $306 million to $601.057 billion for the week ended June 3, according to data from the Reserve Bank of India (RBI). ). This drop is the result of a sharp drop in the value of foreign currency assets. India’s foreign exchange reserves jumped by $3.854 billion to $4.23 billion in the week ending May 27.
The Reserve Bank of India said India’s foreign currency holdings, which constitute the largest component of foreign exchange reserves, fell by $208 million. According to RBI’s weekly statistical supplement released on Friday, it stood at $536.779 billion for the week ended June 3. It comes after foreign currency holdings jumped $3.610 billion the previous week.
Expressed in US dollars, foreign currency assets include the effect of the appreciation or depreciation of non-US currencies such as the euro, British pound sterling and Japanese yen held in foreign exchange reserves. Meanwhile, the value of gold reserves fell from $74 million to $40.843 billion. The value of gold reserves was also on the rise in the previous two weeks.
According to RBI data, the value of India’s Special Drawing Rights (SDRs) at the International Monetary Fund (IMF) fell by $28 million to $18.410 billion during the week. However, the country’s reserve position at the IMF jumped from $5 million to $5.025 billion in the reporting week, according to the RBI.
India’s economy has rebounded strongly, says US Treasury
Earlier on Friday, the US Treasury said India’s economy had rebounded strongly despite three significant waves of COVID-19. Speaking about the country’s growth and the impact of the pandemic, in its recent report to the US Congress, the Treasury Department said India’s acute second wave weighed heavily on growth through mid-2021. , delaying its economic recovery. “However, economic activity rebounded strongly in the second half of the year as India’s immunization rollout accelerated,” the US Treasury said in its report.