Forex reserves fall $7.5 billion to $681.4 billion as gold, foreign currency assets decline

India's foreign exchange reserves fell by $7.511 billion to $681.384 billion in the week ended May 22, extending their decline for a second consecutive week, according to data released by the Reserve Bank of India (RBI) on Friday, reported PTI.

The reserves had dropped by $8.094 billion in the previous reporting week to $688.894 billion.

India's forex reserves had touched an all-time high of $728.494 billion in the week ended February 27, before coming under pressure following the onset of the Middle East conflict, which triggered RBI intervention in the currency market through dollar sales to support the rupee.

Prime Minister Narendra Modi has also made public appeals urging citizens to help conserve foreign exchange by reducing foreign travel, limiting fuel consumption and refraining from gold purchases for a year.

According to RBI data, foreign currency assets (FCAs), the largest component of the reserves, declined by $2.872 billion to $543.032 billion during the reporting week.

Expressed in dollar terms, FCAs include the impact of movements in non-US currencies such as the euro, pound sterling and Japanese yen held in the reserve portfolio.

The value of gold reserves fell by $4.53 billion to $114.786 billion during the week.

Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) declined by $77 million to $18.748 billion.

India's reserve position with the IMF also fell by $33 million to $4.818 billion at the end of the reporting week, RBI data showed.


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