India’s foreign exchange reserves remained largely unchanged at $594.86 billion as of August 25, data from the Reserve Bank of India (RBI) showed on Friday, September 1.
Forex reserves fell by a marginal $30 million for the week, compared to a $7.27 billion drop in the week ended August 18, according to the central bank’s data. The changes in foreign currency assets, expressed in dollar terms, include the effects of appreciation or depreciation of other currencies held in RBI reserves.
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.
Gold reserves were up by $530 million to $44.354 billion, the RBI said. The Special Drawing Rights (SDRs) were down by $ 11 million to $ 18.194 billion, according to the central bank.
The changes in foreign currency assets, expressed in dollar terms, include the effects of appreciation or depreciation of other currencies held in the RBI reserves.
Notably, in October 2021, the country’s forex kitty had reached an all-time high of $645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year, according to news agency PTI.
The forex reserves include India’s Reserve Tranche position in the International Monetary Fund (IMF). The RBI also intervenes in the spot and forwards markets to prevent runaway moves in the rupee.
The country’s reserve position with the IMF was also down by $ 12 million to $ 5.061 billion in the reporting week, according to RBI data.
Meanwhile, the rupee recovered 8 paise to close at 82.62 against the US dollar on Friday due to forex inflows and strong macro data.
The domestic currency also found support from positive sentiment in equity markets while a stronger dollar and a spike in crude oil prices restricted gains.
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