There has been a decrease in India’s foreign exchange reserves once again. It declined by $1.763 billion to $630.19 billion for the week ended February 11, 2022. However, during this period, the value of gold reserves has increased and it has increased by $ 95.20 million to $ 40.235 billion.
Was on high in September 2021
This information has been given in the data released by the Reserve Bank of India (RBI). Earlier, in the week ended February 4, 2022, foreign exchange reserves had increased by $ 2.198 billion to $ 631.953 billion. Significantly, on September 3, 2021, the foreign exchange reserves had reached the highest level of $ 642.453 billion. According to RBI data, forex reserves declined by $4.531 billion to $629.755 billion in the previous week ended January 28, while forex reserves declined by $678 million to $634.287 billion in the week ended January 21.
FCA also declined
If we look at the data, this decline in foreign exchange reserves in the week ended February 11 has been mainly due to the reduction in Foreign Currency Asset (FCA), which forms a significant part of the total currency reserves. The Reserve Bank said that India’s FCA declined by $ 2.764 billion to $ 565.565 billion in the reporting week. Denominated in dollars, FCAs also include the effect of increase or decrease in the value of other foreign currencies such as the euro, pound and yen held in foreign exchange reserves. In the reporting week, the country’s SDR i.e. special drawing rights in the International Monetary Fund (MIF) increased by $ 65 million to $ 19.173 billion.