Forex Update: India’s Foreign Exchange Reserves Fall $2 Billion to $646.67 Billion

After rising for three consecutive weeks, India’s forex reserves fell $2.027 billion to $646.673 billion for the week ended May 24, according to the latest RBI data. In the previous reporting week, the kitty had hit an all-time high of $648.7 billion after a jump of $4.549 billion.

For the week ended May 24, foreign currency assets, a major component of the reserves, decreased by $1.51 billion to $567.499 billion, the data released on May 31 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.

Sanjeev Agrawal, president of PHD Chamber of Commerce and Industry, said, “India’s forex reserves are displaying great resilience since the last many quarters. The recent data shows that India’s foreign currency reserves stand intact at $646 billion bolstered by strong economic growth trajectory, attractiveness to international investors and robust export growth trajectory. The robust GDP growth of 8.2 per cent for FY2023-24 will further strengthen the Forex position of India.”

Gold reserves decreased by $482 million to $56.713 billion during the week ended May 24. The special drawing rights (SDRs) were down by $33 million to $18.135 billion, according to the latest RBI data.

India’s reserve position with the IMF was also down by USD 1 million to USD 4.326 billion in the reporting week, the apex bank data showed.