India's forex reserves have fallen by another $1.15 billion
The continued volatility in the rupee which has significantly depreciated against the US dollar has seen the reserves declining. In the previous reporting week, the overall reserves had declined by $7.541 billion to $572.712 billion.
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FollowThe Reserve Bank of India has released grim data which shows that the country's foreign exchange reserves have declined by $1.152 billion to $571.56 billion for the week ended July 22. The continued volatility in the rupee, which has significantly depreciated against the US dollar, has seen the reserves declining. In the previous reporting week, the overall reserves had declined by $7.541 billion to $572.712 billion.
Also Read: Decoding IMF forecast: 'India must be vigilant, hasten reforms'
Speaking about the Rupee's decline against the US Dollar, RBI Governor Shaktikanta Das was quoted as saying last week that "you buy an umbrella to use it when it rains!". That, according to experts, suggests that the central bank is managing currency volatility utilising foreign exchange reserves.
To note, the forex assets had touched an all-time high of $642 billion in September 2021. Besides the pressure on the rupee, high commodity prices and foreign portfolio investment outflows are being cited as reasons for the heavy decline
In its weekly report released on Friday, the Reserve Bank of India said that the foreign currency assets were at $510.136 billion, a decline of $1.426 billion.
Expressed in dollar terms, the foreign currency assets include the effect of depreciation or appreciation of non-US units like the Euro, Pound and Yen held in the foreign exchange reserves.
The value of the gold reserves is $38.502 billion, an increase of $145 million, the RBI data noted.
The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose to USD 17.963 billion, an increase of $106 million. The country's reserve position with IMF increased to $4.96 billion, up by $23 million, in the reporting week.
Also Read: IMF cuts India's 2022-23 growth forecast, but will still be among fastest growing economies
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