The Reserve Bank of India (RBI) data showed that India's foreign exchange (forex) reserves declined by USD 678 million to USD 634.28 billion in the week ended January 21 due to a steep decline in foreign currency holdings.
According to the RBI's weekly statistics supplement, foreign currency assets, the largest component of FX reserves, fell by USD 1.115 billion to USD 569.582 billion during the week under review.
The effect of appreciation or depreciation of non-dollar currencies held in foreign exchange reserves, such as the Euro, the British Pound Sterling, and the Japanese Yen, is included in the foreign currency assets when expressed in US dollar terms.
India's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) fell by USD 68 million to USD 19.152 billion, while India's reserve position at the IMF fell by USD 22 million to USD 5.216 billion.
The value of gold reserves, on the other hand, increased dramatically. In the week ending January 21, 2022, the value of gold reserves increased by USD 567 million to USD 40.337 billion.