India's forex reserves have fallen to $666.93B
What's the story
India's foreign exchange (forex) reserves have witnessed a significant drop of $5.654 billion. This brings the total down to $666.933 billion for the week ending June 26, according to data released by the Reserve Bank of India (RBI). This comes after an increase in the previous reporting week where reserves rose by $963 million to reach a total of $672.587 billion.
Historical peak
Reserves peaked at $728.494B in late February
The forex reserves had hit a record high of $728.494 billion for the week ending February 27 this year. The surge was short-lived as the West Asia conflict broke out, resulting in weeks of decline due to rupee pressure as well as RBI's dollar sales interventions in the forex market.
Conservation appeal
Prime Minister Modi urges citizens to conserve forex
In light of the declining reserves, Prime Minister Narendra Modi has been urging citizens to conserve forex. The appeals, which started on May 11, include cutting back on foreign travel, reducing fuel consumption, and avoiding gold purchases for a year.
Reserve components
Key components of forex reserves
According to RBI data, foreign currency assets, a key component of the reserves, fell by $150 million to $541.067 billion for the week ending June 26. The value of gold reserves also dropped by $5.394 billion to $102.536 billion during this period. Special drawing rights (SDRs) fell by $89 million to $18.558 billion, while India's reserve position with IMF declined by $21 million to hit an overall total of $4.772 billion at the end of reporting week.