India's Forex Reserves Fall USD 11.41 Billion To USD 698.34 Billion

(MENAFN- KNN India) New Delhi, Mar 28 (KNN) India's foreign exchange reserves declined sharply by USD 11.41 billion to USD 698.34 billion in the week ended March 20, according to data released by the Reserve Bank of India.

The latest drop follows a decline of USD 7.05 billion in the previous week, when reserves stood at USD 709.76 billion. Earlier this year, the country's forex reserves had touched a record high of USD 728.49 billion in late February, reported The Economic Times.

Gold Reserves Lead Decline
The fall in overall reserves was primarily driven by a sharp decline in gold holdings. The value of gold reserves dropped by USD 13.49 billion to USD 117.19 billion during the reporting week, reflecting changes in global gold prices.

In contrast, foreign currency assets (FCAs), which constitute the largest component of the reserves, registered an increase of USD 2.13 billion to USD 557.70 billion. FCAs are influenced by fluctuations in major global currencies such as the euro, pound sterling, and Japanese yen against the US dollar.

SDRs and IMF Position
Special Drawing Rights (SDRs) declined marginally by USD 65 million to USD 18.63 billion. Meanwhile, India's reserve position with the International Monetary Fund rose slightly by USD 19 million to USD 4.83 billion.

Overall, the decline in forex reserves during the week was largely attributed to a drop in gold valuations, even as foreign currency assets posted gains.

(KNN Bureau)

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