India's forex reserves drop by $4.5B to $688B
What's the story
India's foreign exchange reserves have witnessed a decline of $4.47 billion, bringing the total to $688.10 billion for the week ending November 21, according to data from the Reserve Bank of India (RBI). This comes after a sharp increase of $5.543 billion in the previous week when reserves were at $692.58 billion. The latest figures show that gold reserves fell by $2.67 billion while Foreign Currency Assets (FCAs) dipped by another $169 million during this period.
Information
Impact of currency fluctuations on FCA
The RBI has clarified that FCA figures also include the effect of changes in major global currencies such as euro, pound, and yen. These currencies are part of India's reserves. Their appreciation or depreciation against the US dollar can impact the reported value.
Reserve details
Other components of India's forex reserves
In addition to gold reserves and FCAs, two other components of India's forex reserves also witnessed changes. Special Drawing Rights (SDRs) fell by $84 million to $18.56 billion while the reserve position in the International Monetary Fund (IMF) increased by $23 million, reaching a total of $4.75 billion. These shifts reflect minor adjustments within the country's overall foreign exchange holdings.