India's Forex Reserves Take a Significant Hit: What You Need to Know

Forex Reserves Decline in Latest Report

Mumbai: The Reserve Bank of India (RBI) reported a notable decrease in India's foreign exchange reserves, which fell by USD 9.809 billion, bringing the total to USD 686.801 billion for the week ending January 2.

In contrast, the previous week saw an increase of USD 3.293 billion, resulting in reserves of USD 696.61 billion.

The data revealed that foreign currency assets, a key component of the reserves, declined by USD 7.622 billion to USD 551.99 billion.

These foreign currency assets reflect the fluctuations in value due to the appreciation or depreciation of currencies other than the US dollar, including the euro, pound, and yen.

Additionally, the value of gold reserves decreased by USD 2.058 billion, now totaling USD 111.262 billion.

The Special Drawing Rights (SDRs) also saw a reduction of USD 25 million, bringing the total to USD 18.778 billion.

Furthermore, India's reserve position with the International Monetary Fund (IMF) fell by USD 105 million to USD 4.771 billion during the same reporting week.