According to data released by the Reserve Bank of India on Friday, India’s foreign exchange reserves fell by USD 6.477 billion to USD 675.653 billion in the week ended November 8. This is a steady decline from last week’s decline of USD 2.675 billion, while reserves stood at USD 682.13 billion. It had reached a record high of USD 704.885 billion at the end of September but has been steadily declining since then.
Key components show decline
Foreign currency assets, the largest component of reserves, fell by USD 4.467 billion to USD 585.383 billion. These assets, denominated in dollars, are also subject to fluctuations in value due to movements in other currencies such as the euro, yen, and pound.
Gold reserves fell from USD 1.936 billion to USD 67.814 billion. It was USD 60 million in Special Drawing Rights (SDRs), which is USD 18.159 billion. India’s reserve position with the International Monetary Fund (IMF) also declined by USD 14 million to USD 4.298 billion during the reporting week.
This steady decline in foreign reserves reflects global economic growth and changes in the value of money and asset structures held by India.