India’s foreign exchange reserves saw a second consecutive weekly decline, reaching a near four-month low of $593.04 billion as of September 15, according to data from the Reserve Bank of India (RBI). This marked a decrease of $860 million from the previous week, following a $5 billion drop in reserves the week before.
The RBI has been actively intervening in the currency markets to curb any excessive depreciation of the Indian rupee. In recent trading sessions, it has reportedly sold dollars through public sector banks to prevent the rupee from reaching record lows.
Apart from the RBI’s intervention, fluctuations in foreign currency assets, expressed in dollar terms, are influenced by changes in the value of other currencies held within the RBI’s reserves. These foreign exchange reserves also include India’s Reserve Tranche position in the International Monetary Fund (IMF).
During the week covered by the forex reserves data, the Indian rupee experienced a slight decline against the US dollar, trading within a range of 82.8225 to 83.1850. However, on the Friday of the report, it closed at 82.93, ending a three-week losing streak.
Here’s a breakdown of the components of India’s foreign exchange reserves as of September 15, 2023:
- Foreign currency assets: $525,915 million
- Gold holdings: $44,000 million
- Special Drawing Rights (SDRs): $18,092 million
- Reserve Tranche Position in the IMF: $5,030 million
- Total foreign exchange reserves: $593,037 million
This data reflects India’s efforts to manage its foreign exchange reserves and stabilize its currency amidst market fluctuations.