India’s forex reserves drop by $ 5.681 billion

27 Feb 2023 , 10:42 AM

According to the latest Reserve Bank of India data, India’s foreign exchange reserves fell by USD 5.681 billion to USD 561.267 billion in the week ending February 17. The overall forex reserves have fallen for the third week in a row.

The reserves fell by USD 8.319 billion to USD 566.948 billion during the week ending February 3. According to the most recent data from the Reserve Bank of India, India’s foreign currency assets, the largest component of its forex reserves, fell by USD 4.515 billion to USD 496.072 billion.

The value of gold reserves fell by USD 1.045 billion to USD 41.817 billion. The overall forex reserves were around USD 633 billion at the start of the last year 2022. Much of the drop can be attributed to the RBI’s recent intervention as well as an increase in the cost of imported goods.

The country’s foreign exchange reserves reportedly reached an all-time high of around USD 645 billion in October 2021. The RBI’s intervention in the market to defend the depreciating rupee against a surging US dollar had caused the forex reserves to fall intermittently for months.

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