Mumbai, March 27
India’s foreign exchange reserves fell by USD 11.41 billion to USD 698.35 billion in the week ended 20 March, according to data released by the Reserve Bank of India (RBI) on Friday. The decline was mainly driven by a sharp drop in the value of gold reserves, even as foreign currency assets posted a modest increase during the period.
In the previous reporting week, India’s overall forex reserves had already declined by USD 7.05 billion to USD 709.76 billion. The country’s reserves had earlier risen to a record high of USD 728.49 billion in the week ended 27 February, before the onset of the West Asia conflict.
For the latest reporting week, foreign currency assets — the largest component of the reserves — increased by USD 2.13 billion to USD 557.70 billion, RBI data showed. The RBI said foreign currency assets, when expressed in dollar terms, also reflect the impact of fluctuations in non-US currencies such as the euro, pound and yen held in the reserves.
However, gold reserves fell sharply by USD 13.50 billion to USD 117.19 billion during the week, accounting for the bulk of the overall decline.
Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) fell by USD 65 million to USD 18.63 billion. India’s reserve position with the IMF, meanwhile, rose by USD 19 million to USD 4.83 billion in the reporting week.
The latest fall marks a pullback from the record levels seen earlier this year, although India’s forex reserves remain among the strongest buffers against external shocks.
