India’s foreign exchange reserves drop by $2.4 billion to $576.8 billion

The country’s foreign exchange reserves declined by $2.415 billion to stand at $576.869 billion in the week ended April 2, RBI data showed on Friday.

In the previous week ended March 26, the reserves had decreased by $2.986 billion to $579.285 billion. The forex kitty had touched a record high of $590.185 billion in the week ended January 29, 2021.

In the reporting week ended April 2, 2021, the decline in the reserves was mainly on account of a fall in foreign currency assets (FCA), a major component of the overall reserves.

FCA declined by $1.515 billion to $536.438 billion, weekly data by the Reserve Bank of India (RBI) showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

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The gold reserves dropped by $884 million to $34.023 billion in the reporting week, as per the central bank data.

The special drawing rights (SDRs) with the International Monetary Fund (IMF) dipped by $4 million to $1.486 billion.

The country’s reserve position with the IMF declined by $12 million to $4.923 billion in the reporting week, the data showed.

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