Forex Kitty Drops $4.34 Billion to $589.14 Billion

Falling for the second consecutive week, India’s forex reserves dropped by USD 4.339 billion to USD 589.138 billion for the week ended May 26, the Reserve Bank said on Friday. In the previous reporting week, the reserves had declined by USD 6.052 billion to USD 593.477 billion.

It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. For the week ended May 26, the foreign currency assets, a major component of the reserves, declined by USD 4.014 billion to USD 520.931 billion, according to the Weekly Statistical Supplement released by the RBI on Friday.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves dropped by USD 225 million to USD 44.902 billion, the RBI said.

The Special Drawing Rights (SDRs) were down by USD 84 million to USD 18.192 billion, the apex bank said. The country’s reserve position with the IMF was down by USD 17 million to USD 5.113 billion in the reporting week, the apex bank data showed.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)