Secular Decline In Forex Reserves Continue, Now At USD 623 Billion
Date
1/25/2025 2:15:45 PM
(MENAFN- KNN India)
New Delhi, Jan 25 (KNN) In the latest report from the Reserve bank of India (RBI), the nation's foreign exchange reserves have experienced a continued downward trajectory, decreasing by USD 1.88 billion to USD 623.983 billion in the week ended January 17.
This follows a previous decline of USD 8.714 billion in the week ended January 10, signaling a persistent trend of reduction in the country's monetary reserves.
The ongoing decline can be attributed to multiple factors, primarily revaluation processes and strategic Forex market interventions by the RBI aimed at mitigating volatility in the rupee's exchange rate.
This comes after the reserves had reached a historic peak of USD 704.885 billion at the end of September, marking a significant shift in the country's foreign exchange landscape.
Breaking down the components of the reserves, foreign currency assets-a critical element of the total reserves-decreased by USD 2.878 billion to USD 533.133 billion.
These assets, expressed in dollar terms, incorporate the fluctuating values of non-US currencies such as the euro, pound, and yen, reflecting the complex dynamics of international exchange rates.
Amid the overall decline, some segments of the reserves showed marginal increases. Gold reserves rose by USD 1.063 million, reaching USD 68.947 billion.
Similarly, Special Drawing Rights (SDRs) increased by USD 1 million to USD 17.782 billion. Conversely, India's reserve position with the International Monetary Fund (IMF) declined by USD 74 million, settling at USD 4.122 billion for the reporting week.
This sustained reduction in forex reserves underscores the intricate challenges facing India's monetary management in the current global economic environment.
(KNN Bureau)
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