India’s Forex Reserves Fall USD 7.05 Billion to USD 709.76 Billion

India’s foreign exchange reserves dropped by USD 7.052 billion , falling to USD 709.759 billion for the week ended March 13, according to data released by the Reserve Bank of India (RBI) on Friday. The decline comes after a fall of USD 11.683 billion in the previous reporting week, when reserves had slipped to USD 716.81 billion .

A major component of the reserves, foreign currency assets (FCA) , fell by USD 7.678 billion to USD 555.568 billion . These assets are expressed in dollar terms and include the effects of appreciation or depreciation of non-US currencies such as the euro, pound, and yen held in India’s forex kitty.

On the other hand, the value of gold reserves increased by USD 664 million , reaching USD 130.681 billion during the same period. Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) edged down by USD 23 million to USD 18.697 billion , while India’s reserve position with the IMF also dipped slightly by USD 15 million to USD 4.814 billion .

Recent trends show volatility in the country’s reserves. The kitty had surged to an all-time high of USD 728.494 billion during the week ended February 27, only to face consecutive declines in subsequent weeks. Analysts attribute the fluctuations largely to currency movements, foreign capital flows, and RBI interventions to stabilise the domestic market.