India’s forex reserves drop by $8.58 billion to $726.03 billion in week ended October 9: RBI

India’s foreign exchange reserves declined by $8.578 billion to $726.027 billion in the week ended October 9, according to data released by the Reserve Bank of India (RBI) on Friday. In the previous reporting week, the country’s forex kitty had fallen by $12.952 billion to $734.606 billion. India’s foreign exchange reserves had reached an all-time high of $785.706 billion in the week ended September 4. The increase was driven by substantial foreign currency inflows linked to a special concessional swap for deposits from the Indian diaspora, through which banks raised a record sum of nearly $133 billion. However, the country’s forex reserves have been on a declining trend since then, with the latest data showing another significant weekly fall.

Foreign currency assets fall by $7.14 billion

Foreign currency assets (FCAs), the largest component of India’s foreign exchange reserves, declined by $7.142 billion to $597.605 billion during the week ended October 9, according to the RBI data.

Expressed in dollar terms, FCAs reflect the impact of appreciation or depreciation in non-US currencies, including the euro, pound and yen, held as part of the country’s foreign exchange reserves.

Gold reserves decline by $1.32 billion

The value of India’s gold reserves decreased by $1.319 billion to $105.094 billion during the reporting week, the RBI said.

The country’s Special Drawing Rights (SDRs), an international reserve asset created by the International Monetary Fund (IMF), fell by $109 million to $18.548 billion.

Meanwhile, India’s reserve position with the IMF declined by $10 million to $4.78 billion during the week ended October 9, according to the central bank’s data.