India's Foreign Exchange Reserves Drop USD 17.7 Bn In Latest Week
Date
11/23/2024 2:16:10 PM
(MENAFN- KNN India)
New Delhi, Nov 23 (KNN) India's foreign exchange reserves marked a significant decline, falling by USD 17.7 billion to reach USD 657.89 billion for the week ending November 15, according to data released by the Reserve bank of India (RBI) on Friday.
This follows a previous week's position of USD 675.65 billion as of November 8, indicating a continuing downward trend in the nation's Forex holdings.
The Weekly Statistical Supplement from the RBI revealed that Foreign Currency Assets (FCAs), which constitute the largest component of the reserves, experienced the most substantial decrease, dropping by USD 15.5 billion to settle at USD 569.84 billion.
The nation's gold reserves also witnessed a considerable reduction of USD 2 billion, bringing the total to USD 65.7 billion.
Additionally, Special Drawing Rights (SDRs) decreased by USD 94 million to USD 18 billion, while the reserve position in the International Monetary Fund (IMF) contracted by USD 51 million to USD 4.2 billion.
Despite this recent decline, India maintains its position as the world's fourth-largest holder of foreign exchange reserves, following China, Japan, and Switzerland.
This achievement marks a remarkable transformation from India's previous classification among the 'Fragile Five' economies to its current status as the world's fifth-largest economy.
Earlier this year, India's forex reserves had crossed the historic milestone of USD 700 billion for the first time.
The RBI actively manages these reserves through strategic market interventions, including dollar sales, to prevent excessive volatility in the rupee's exchange rate.
The central bank's approach focuses on maintaining orderly market conditions without targeting specific exchange rate levels or bands, demonstrating its commitment to stabilising India's currency markets while supporting the country's economic growth trajectory.
(KNN Bureau)
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