According to data released by the Reserve Bank of India (RBI) on Friday, India’s foreign exchange reserves fell by USD 1.774 billion to USD 595.954 billion in the week ended May 6, following the fall in core currency assets.
In the previous reporting week, the overall reserves fell from USD 2.695 billion to USD 597.728 billion, falling below the USD 600 billion mark.
At a time when the currency is under pressure due to heavy outflows by foreign investors, the RBI is reportedly intervening in all markets to protect the currency. In the six months from March 2022, the foreign exchange reserves decreased by US 28 28.05 billion.
In the reporting week, the fall in reserves was due to foreign currency assets (FCA), a major component of the overall reserves and the decline in gold reserves, according to the RBI’s weekly data.
In the week ended May 6, FCA USD fell 1.968 billion to USD 530.855 billion.
In dollar terms, foreign exchange assets include the effects of the devaluation of non-US units, such as the euro, the pound, and the yen, which reside in foreign exchange reserves.
Gold reserves rose 135 million USD to USD 41.739 billion during the reporting week, the data shows.
Special drawing rights (SDRs) with the International Monetary Fund (IMF) increased from USD 70 million to USD 18.370 billion.
The country’s reserve position with the IMF fell by ড 11 million to USD 4.99 billion in the reporting week, the data shows.