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India's foreign exchange reserves declined by USD 1.877 billion in the week that ended November 28 to USD 686.227 billion, according to the latest weekly data released by the Reserve Bank of India (RBI).
In the last reporting week (November 21), forex reserves declined by USD 4.472 billion to USD 688.104 billion, driven by a slump in both foreign currency assets and gold reserves. Over the past many weeks, the forex kitty has been largely in a downtrend. RBI's 'Weekly Statistical Supplement' data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 557.031 billion, down USD 3.569 billion. Interestingly, gold reserves increased by 1.613 billion to USD 105.795 billion during the current reporting week. The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand. The data showed that the Special Drawing Rights (SDRs) increased by USD 63 million to USD 18.628 billion. The country's reserve position with the International Monetary Fund (IMF) increased by USD 16 million to USD 4.772 billion, as per the data. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. So far in 2025, the forex kitty has cumulatively increased by about USD 48 billion, data showed. The RBI often intervenes by managing liquidity, including selling dollars, to prevent a steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens. (ANI)
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