India's forex reserves down by $2.94 billion to $535.25 billion

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After rising for the past few weeks, the country's foreign exchange reserves declined by $2.939 billion to $535.252 billion for the week ended August 14, RBI data showed on August 21. In the previous week ended August 7, the reserves had increased by $3.623 billion to reach a record high of $538.191 billion.

The foreign exchange kitty had crossed the half-a-trillion mark for the first time in the week ended June 5, 2020, after it had swelled by $8.223 billion to stand at $501.703 billion.

In the week ended August 14, the reserves declined due to a fall in foreign currency assets (FCA), a major component of the overall reserves.

FCA dropped by $743 million to $491.550 billion in the reporting week, the central bank data showed.

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.

The gold reserves slumped $2.19 billion in the reporting week to $37.595 billion, as per the RBI data.

The special drawing rights with the International Monetary Fund (IMF) declined by $2 million to $1.479 billion.

The country's reserve position with the IMF also dipped by $4 million to $4.628 billion during the reporting week.