Biggest drop in India’s foreign exchange reserves, down by $10.75 million to $690.43 billion
India’s Foreign Currency: According to the most recent RBI statistics, India’s foreign currency reserves fell $10.746 billion to $690.43 billion for the week ended October 11, marking one of the worst declines in the country’s reserves in recent memory. This is the second week in a row that has declined.
The week ending on October 11 saw a $98 million decline in gold reserves, bringing them to $65.658 billion. The RBI data, which was made public on October 18, indicated that the special drawing rights (SDRs) had decreased by $86 million to $18.339 billion.
With the week ending on October 4, India’s foreign exchange reserves decreased by $3.709 billion, reaching $701.176 billion.
The reserves reached an all-time high of $704.885 billion at the end of September.
The most recent data from the RBI shows that for the week ending October 11, foreign currency assets—a significant part of the reserves—dropped by $10.542 billion to $602.101 billion.
The impact of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves’ appreciation or depreciation is included in the foreign currency assets, which are expressed in terms of dollars.
According to statistics from the top bank, India’s reserve position with the IMF decreased by $20 million to $4.333 billion during the reporting week.
Why Are Foreign Exchange Reserves in India Declining?
Foreign portfolio investors’ (FPIs) ongoing withdrawal of cash from the Indian stock market is causing the country’s foreign exchange reserves to decline. After China just announced a massive stimulus package, foreign institutional investors (FIPs) are withdrawing their money from India and relocating to a less expensive market. FPIs have taken out Rs 78,190 crore this month so far.
