Foreign currency assets and gold reserves witness significant decline, SDRs see slight uptick
India's foreign exchange reserves experienced a decline of $1.781 billion, settling at $638.698 billion for the week ended February 28, according to data released by the Reserve Bank of India (RBI) on Friday.
This decline comes after a notable rise of $4.758 billion in the previous week, which had pushed the total reserves to $640.479 billion. The country had recorded its highest-ever forex reserves of $704.885 billion at the end of September 2024.
Breakdown of Forex Reserves Components
Foreign Currency Assets
Foreign currency assets (FCAs), which form the largest portion of India's forex reserves, decreased by $493 million to $543.35 billion. FCAs represent the value of foreign currencies such as the euro, pound sterling, and Japanese yen, calculated in dollar terms, and are sensitive to fluctuations in exchange rates.
Gold Reserves
India's gold reserves saw a significant drop, falling by $1.304 billion to reach $73.272 billion in the reporting week, the RBI stated.
Special Drawing Rights (SDRs)
Meanwhile, Special Drawing Rights recorded a marginal increase, rising by $27 million to $17.998 billion.
Reserve Position with the IMF
The nation's reserve position with the International Monetary Fund (IMF) showed a slight decline, dipping by $12 million to $4.078 billion during the same period.
The latest data indicates continued fluctuations in India's foreign exchange reserves amid global economic volatility.
