India’s Forex Update: Foreign Exchange Reserves Decline $2.36 Billion To $583.53 Billion, Check Details

India’s foreign exchange (forex) reserves declined by $2.36 billion to $583.53 billion during the week ended October 20, according to the latest RBI data. In the previous reporting week, the overall reserves had increased by $1.153 billion to $585.895 billion.

In October 2021, the country’s forex kitty reached an all-time high of $645 billion. The reserves took a hit as the central bank deployed the reserves to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended October 20, the foreign currency assets, a major component of the reserves, decreased by $4.15 billion to $515.2 billion, according to the Weekly Statistical Supplement released by the RBI.

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 $1.85 billion to $45.42 billion during the week, the RBI said. The special drawing rights (SDRs) were down by $70 million to $17.93 billion, the apex bank said.

India’s reserve position with the IMF increased by $6 million to $4.98 billion in the reporting week, the apex bank data showed.

In a recent session with Krishna Srinivasan, Director, Asia and Pacific Department at IMF, RBI Governor Shaktikanta Das said, “We do not have a specific exchange rate in mind with regard to our currency market intervention.”

“Our approach and our focus, our emphasis is to prevent excessive volatility of the exchange rate,” he added.

Das also called on the United States and other countries and organisations to review their use of “labelling like watch lists”.

On the rupee movement in the week ended Friday, October 27, Anil Kumar Bhansali, head (treasury) and executive director of Finrex Treasury Advisors LLP, said, “The rupee moved in a range of 20 paise as RBI sold dollars at 83.25 and FPIs, Oil companies and importers bought dollars on the small dips they got. Rupee has been in a range for more than a month and is expected to remain in the range of 82.90 to 83.35 next week also.”