Forex Reserves Slide Further By USD 8.4 Billion: RBI Report
Date
12/28/2024 4:25:08 AM
(MENAFN- KNN India)
New Delhi, Dec 28 (KNN) India's foreign exchange reserves experienced a significant decline of USD 8.4 billion, reaching USD 644.39 billion as of December 20, according to the latest data released by the Reserve bank of India (RBI) on Friday.
This follows a previous decrease of USD 1.98 billion in the week ending December 13, 2024, when reserves stood at USD 652.87 billion.
The decline extended across multiple reserve components, with Gold reserves decreasing by USD 2.3 billion to USD 65.7 billion.
Special Drawing Rights (SDRs) saw a reduction of USD 112 million, settling at USD 17.88 billion, while the country's reserve position in the International Monetary Fund (IMF) contracted by USD 23 million to USD 42.17 billion.
Despite these recent fluctuations, 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 reached a historic milestone when its foreign exchange reserves surpassed USD 700 billion for the first time.
The Reserve Bank of India actively manages these reserves through periodic market interventions, including strategic dollar sales, to prevent sharp depreciation of the rupee.
The central bank emphasises that its interventions are solely aimed at maintaining orderly market conditions and controlling excessive exchange rate volatility, rather than targeting specific currency levels or bands.
(KNN Bureau)
MENAFN28122024000155011030ID1109037042
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.