India’s foreign exchange reserves fell by $9.32 billion to reach $688.87 billion for the week ending August 1. This is one of the biggest weekly drops in recent months, according to data released by the Reserve Bank of India (RBI) on Friday.
Last week, the reserves had actually increased by $2.7 billion to $698.19 billion.
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The main reason for this sharp fall is a $7.32 billion decrease in foreign currency assets, which make up the largest part of India’s reserves. These assets are now worth $581.6 billion.
Foreign currency assets are affected by changes in the value of other currencies like the euro, British pound, and Japanese yen.
Gold reserves also went down by $1.7 billion to $84 billion this week.
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Additionally, Special Drawing Rights (SDRs), which are international reserve assets, decreased by $237 million to $18.57 billion. India’s reserve position with the International Monetary Fund (IMF) also dropped slightly by $59 million to $4.69 billion.
