The country’s foreign exchange reserves decreased further, decreasing by $1.88 billion

New Delhi| India’s foreign exchange reserves declined by $1.88 billion to $623.983 billion in the week ending January 17. RBI gave this information. Earlier in the week ending January 10, the total reserves of Forex reserves decreased by $8.714 billion to $625.871 billion.

There has been a declining trend in reserves for the last few weeks and the reason for this decline is the steps taken by RBI to reduce the volatility in the rupee. The central bank intervenes in the foreign exchange market from time to time to keep the rupee stable.

Foreign exchange reserves had risen to an all-time high of US$704.885 billion at the end of September 2024. Foreign currency assets, the major component of foreign exchange reserves, declined by $2.878 billion to $533.133 billion in the week ending Jan. 17, according to data released. Foreign currency assets, measured in dollar terms, include the effect of appreciation or depreciation of non-US units such as the euro, pound and yen held in foreign exchange reserves. During the said week, gold reserves increased by US$ 1.063 million to US$ 68.947 billion, RBI said.

Special Drawing Rights (SDRs) rose by $1 million to $17.782 billion, the top bank said. According to the data, India’s reserve position with the IMF declined by US$ 74 million to US$ 4.122 billion in the week under review.