India's forex reserves hit a 2-week low of $695B
What's the story
India's foreign exchange reserves have witnessed another decline, dropping by $1.183 billion to $695.489 billion for the week ending July 18. The latest data was released by the Reserve Bank of India (RBI) yesterday. This comes after a previous decline of $3.06 billion in the last reporting week, when reserves stood at $696.67 billion.
Historical high
Forex reserves peaked in September 2024
The foreign exchange reserves had touched a record high of $704.885 billion at the end of September 2024. The reserves are made up of assets held by the central bank, mainly in currencies like US Dollar, Euro, Japanese Yen, and Pound Sterling.
Asset breakdown
Foreign currency assets fall, gold reserves rise
The latest data also revealed a decline in foreign currency assets, the largest component of India's forex reserves. These assets fell by $1.201 billion to $587.609 billion for the week ending July 18. However, gold reserves witnessed a rise during this period, surging by $150 million to $84.499 billion, according to RBI's report.
Reserve dip
Reserve position with IMF also declined
Along with the overall forex reserves, Special Drawing Rights (SDRs) also saw a decline. SDRs fell by $119 million to touch $18.683 billion. Further, the country's reserve position with the International Monetary Fund (IMF) also witnessed a slight dip of $13 million to $4.698 billion during this period, according to data released by RBI.