India’s foreign exchange reserves have experienced a significant decline, marking their steepest weekly fall in over six months. Here are the key details:
- As of August 18, India’s foreign exchange reserves stood at $594.89 billion, reaching a near two-month low.
- The reserves recorded a sharp decline of $7.27 billion during the week, marking the most substantial weekly drop since February 10.
- These reserves encompass foreign currency assets, which are measured in dollar terms. They also account for the impact of currency appreciation or depreciation of other currencies held in the Reserve Bank of India’s (RBI) reserves.
- Additionally, India’s forex reserves include its Reserve Tranche position in the International Monetary Fund (IMF).
- The decline in reserves coincided with the rupee’s drop to a 10-month low of 83.16 against the U.S. dollar during the week. The RBI intervened in response to stabilize the currency.
- Despite these fluctuations, RBI Governor Shaktikanta Das stated that the central bank does not have a specific target for the rupee’s exchange rate.
- The rupee closed at 82.6475 against the U.S. dollar on Friday, posting a weekly gain of over 0.5%, its best weekly performance since July 14.
Please note that foreign exchange reserves are subject to fluctuations due to various factors, including currency movements and central bank interventions.
Source data: RBI Document
