The country’s foreign exchange reserves declined by $1.169 billion to $637.477 billion for the week ended October 1, showed RBI data on Friday. In the previous week ended September 24, 2021, reserves declined by $997 million to $638.646 billion. Reserves increased by $8.895 billion to $642.453 billion for the week ended September 3, 2021.
During the reporting week ended October 1, 2021, the decline in the forex kitty was due to a fall in foreign currency assets (FCA), a major component of the overall reserves. According to weekly data from the Reserve Bank of India (RBI), the FCA declined by $1.28 billion to $575.451 billion.
Expressed in dollar terms, foreign currency assets include the effect of appreciation or depreciation of non-US units such as the euro, pound and yen held in foreign exchange reserves. Data shows that gold reserves rose by $128 million to $37.558 billion in the reporting week.
The Special Drawing Rights (SDR) with the International Monetary Fund (IMF) declined by $138 million to $19.24 billion. The country’s reserve position with the IMF increased by $122 million to $5.228 billion.