India’s forex reserves declined by $2.41 billion to $637.92 billion as of April 26, latest data published by the Reserve Bank of India showed on Friday.
Previously, forex reserves contracted by $2.83 billion to $640.33 billion, for the week ended on April 19, 2024.
According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) decreased by $1.16 billion to $559.7 billion. Expressed in dollar terms, the FCAs 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 $1.28 billion to $55.53 billion, whereas SDRs were up by $15 million to $18.05 billion.
Reserve position in the IMF increased by $8 million to $4.64 billion.
It can be noted that last month, the country's forex kitty had reached an all-time high of $645.6 billion.
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
Source Name : Economic Times