Forex reserves fall $1.15 billion to $571.56 billion

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India’s foreign exchange reserves declined $1.152 billion to $571.56 billion for the week ended July 22, according to RBI data.

The reserves has been declining amid continuing volatility in the rupee which has also significantly depreciated against the US dollar.

In the previous reporting week, the overall reserves had declined by $7.541 billion to $572.712 billion.

Defending the rupee amid pressures due to rising interest rates in the developed world, high commodity prices and foreign portfolio investment outflows has resulted in heavy decline in the forex assets, which had touched an all-time high of $642 billion in September 2021.

For the reporting week ended July 22, the foreign currency assets declined $1.426 billion to $510.136 billion, the Reserve Bank of India (RBI) said in its weekly report released on Friday.

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 value of the gold reserves increased $145 million to USD 38.502 billion, the apex bank said. The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) went up by $106 million to $17.963 billion.

The country’s reserve position with IMF increased by $23 million to $4.96 billion in the reporting week, the data showed.