India's forex reserves drop by $2.23 billion

MUMBAI: India's foreign exchange (forex) reserves dropped by $2.234 billion to $550.871 billion for the week ended September 9, the lowest level in two years, the Reserve Bank of India (RBI) data showed. This is the sixth weekly fall in the country's forex reserves. The forex reserves had dropped by $7.941 billion during the week ended September 2.

India's forex reserves have dropped by almost $80 billion since this escalation of the Russia-Ukraine tensions into war earlier this year. As per the Reserve Bank of India's weekly statistical supplement, foreign currency assets, which are the biggest component of the forex reserves, dipped by $2.519 billion to $489.598 billion during the week ended September 9. The foreign currency assets had declined by $6.527 billion in the previous week.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK's Pound Sterling and Japanese Yen held in the foreign exchange reserves. The value of gold reserves rose by $340 million to $38.644 billion during the week ended September 9. The value of gold reserves had declined by $1.339 billion in the previous week.

The value of India's Special Drawing Rights (SDRs) with the International Monetary Fund declined by $63 million to $17.719 billion during the week under review, the RBI data showed. India's reserve position in the International Monetary Fund (IMF) increased by $8 million to $4.910 billion during the week ended September 9, as per the RBI Weekly Statistical Supplement.