India’s forex reserves fall $1.774 billion to $595.954 billion

India’s forex reserves declined by USD 1.774 billion to USD 595.954 billion for the week ended May 6 on the back of a fall in the core currency assets, according to Reserve Bank of India (RBI) data released on Friday.

In the previous reporting week, the overall reserves had declined by USD 2.695 billion to USD 597.728 billion, falling below the USD 600 billion mark.

At a time when the currency is under pressure due to heavy outflow by foreign investors, RBI is reportedly intervening across all markets to defend the currency. The foreign exchange reserves declined by USD 28.05 billion in the six months to March 2022.

During the reporting week, the fall in the reserves was on account of a decline in the Foreign Currency Assets (FCA), a major component of the overall reserves, and gold reserves, as per RBI’s weekly data.

FCA dropped by USD 1.968 billion to USD 530.855 billion in the week ended May 6.

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 increased by USD 135 million to USD 41.739 billion in the reporting week, the data showed.

The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) jumped by USD 70 million to USD 18.370 billion.

The country’s reserve position with the IMF decreased by USD 11 million to USD 4.99 billion in the reporting week, the data showed.