Forex Reserves Down For Second Consecutive Week To $562.81 Billion, Shows RBI Data

The overall reserves had dropped by $571 million to $563.499 billion in the previous week. Prior to that, forex reserves had registered a five-week consecutive increase

The country's foreign exchange reserves reached an all-time high of $645 billion in October 2021.

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Forex reserves of the country dropped to $562.80 billion as of December 23, declining for second consecutive week, according to the latest RBI data released on Friday. Reserve Bank of India’s (RBI) Bulletin Weekly Statistical Supplement showed that India's forex reserves dropped by $691 million this last week. 

The overall reserves had dropped by $571 million to $563.499 billion in the previous reporting week. Earlier to that forex reserves had registered a five-week consecutive increase. 

According to a PTI report, the country's foreign exchange reserves reached an all-time high of $645 billion in October 2021. The forex reserves have been on a declining trajectory as Reserve Bank of India has deployed the reserve to defend the rupee amid pressures caused majorly by global developments. The rupee is set to end the year down nearly 11 per cent against the dollar, its worst annual performance since 2013.

According to the Weekly Statistical Supplement, foreign currency assets (FCA), a major component of the overall reserves, depleted by $1.134 billion to $498.49 billion during the week to December 23. The foreign currency assets also include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.

The data also showed Gold reserves increased by $390 million to $40.969 billion. The Special Drawing Rights (SDRs) increased by $8 million to $18.19 billion. 

The RBI data also showed that the country's reserve position with the International Monetary Fund (IMF) rose by $45 million to $5.159 billion during the week to December 23.