India's forex reserves drop by USD 8.32 bn to USD 566.95 bn: RBI

Mumbai:  India's forex reserves dropped by USD 8.319 billion to USD 566.948 billion for the week that ended on February 10, said the RBI on Friday. This is the second consecutive week of drop in the reserves after the USD 1.49-billion decrease in the previous reporting week.

The reserves have been declining as the central bank deploys the kitty to defend the rupee

It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.

Foreign currency assets decreased by USD 7.108 bn

For the week that ended on February 10, the foreign currency assets, a major component of the reserves, decreased by USD 7.108 billion to USD 500.587 billion, according to the Weekly Statistical Supplement released by the RBI on Friday.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves decreased for the second week running and were USD 919 million down to USD 42.862 billion, the RBI said. The Special Drawing Rights (SDRs) were also down by USD 190 million to USD 18.354 billion, the RBI said. The country's reserve position with the IMF was down by USD 102 million to USD 5.145 billion in the reporting week, the apex bank data showed.

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