India’s Forex Reserves Drop by $329 Million to $578.45 Billion; FY23 Sees $29 Billion Decline

Snapping the rise in forex reserves for two consecutive weeks, India’s foreign exchange reserves declined $329 million to $578.449 billion during the week ended March 31, on decline in gold reserves, according to the latest RBI data. The reserves had risen handsomely in the previous two reporting weeks, and rose by $5.977 billion to $578.778 billion for the week ended March 24.

In the entire financial year 2022-23, the overall forex reserves has fallen $28.86 billion.

India’s foreign exchange (forex) had reached an all-time high of $645 billion in October 2021. Since then, the reserves saw a continuous decline as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.

Reserves dropped sharply by almost 18.5 per cent i.e. around $118 bn from a record high of $642 bn touched in September 2021 to $524.52 bn in October 2022. But, reserves rose from October 2022 to $578.80 billion (till 17th March) as RBI bought dollars on dip to replenish its reserves.

For the week ended March 31, the foreign currency assets, a major component of the reserves, decreased by $36 million to $509.691 billion, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI) on Friday.

Expressed in dollar terms, the foreign currency assets 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 decreased by $279 million to $45.20 billion, the RBI said. The Special Drawing Rights (SDRs) were down by $27 million to $18.392 billion, the apex bank said.

The country’s reserve position with the IMF was up by $14 million to $5.165 billion in the reporting week, the apex bank data showed.

Read all the Latest Business News here