India's foreign exchange reserves continue to decline. The reserve bank of india (RBI) on friday informed that the country's foreign exchange reserves fell by $8.48 billion to $644.39 billion in the week ending december 20. In the previous week, the country's foreign exchange reserves fell by $1.99 billion to a six-month low of $652.87 billion.
Why is the foreign exchange reserve declining?
Foreign exchange reserves have been declining for the past few weeks. The reason for this decline is believed to be RBI's intervention in the foreign exchange market to reduce the volatility in the rupee as well as valuation.
Foreign exchange reserves reached an all-time high in September
In late September, foreign exchange reserves rose to an all-time high of US$704.88 billion. According to the data released on friday, the major part of the foreign exchange reserves or foreign currency assets decreased by $ 6.01 billion to $ 556.56 billion in the week ending december 20. Foreign currency assets expressed in dollar terms include the effect of the increase or decrease in non-US currencies like Euro, Pound and Yen kept in the foreign exchange reserves.
The value of gold reserves also decreased
The value of gold reserves decreased by $ 2.33 billion to $ 65.73 billion in the week under review. Special Drawing Rights (SDR) decreased by $ 112 million to $ 17.88 billion. According to the data of the Reserve Bank, India's reserve with the international Monetary Fund (IMF) also decreased by $ 23 million to $ 4.22 billion in this period under review.
Foreign exchange reserves were also discussed in Parliament
The country's foreign exchange reserves were also discussed during the winter session of parliament in which the Finance Ministry gave information about the then forex data and it was told that in September, the highest level of US $ 700 billion (704.88) billion was seen in the forex reserves.
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