India's foreign exchange (forex) reserves fell by USD 6.687 billion to USD 564.053 billion, for the week ending August 19, the lowest level in more than two years. This decline was caused by a sharp decline in foreign currency assets as the RBI continued to intervene in currency markets to support the rupee. The largest component of foreign currency reserves, foreign currency assets, decreased by USD 5.779 billion to USD 501.216 billion during the week ended August 19, according to the Reserve Bank of India's weekly data supplement.
The nation's currency reserves have dropped for the third consecutive week. The week ended August 12 saw a USD 2.238 billion decline in the foreign reserves. During the week ending August 12, India's foreign exchange holdings fell by USD 2.652 billion to USD 506.994 billion.
The value of non-dollar currencies like the euro, pound sterling, and yen kept in foreign exchange reserves is included in the foreign currency assets, which are expressed in terms of US dollars. The nation's foreign exchange reserves decreased for the week ending August 19 across the board.
During the week under examination, the value of gold reserves decreased by USD 704 million to USD 39.914 billion. According to the RBI data, the value of India's Special Drawing Rights (SDRs) with the IMF decreased by USD 146 million to USD 17.987 billion during the week under consideration.
According to the RBI Weekly Statistical Supplement, India's reserve position at the International Monetary Fund (IMF) decreased by USD 58 million to USD 4.936 billion during the week ending August 19.
FOREX reserves fell USD2.24 bn to USD570.74 bn