- India's forex reserves fell by $7.51 billion to $681.38 billion as of May 22
- RBI sold dollars heavily to stabilize the Indian rupee in the spot market
- Gold reserves dropped by $4.53 billion to $114.78 billion during the week
India's forex reserves dropped by $7.51 billion on week to stand at $681.38 billion as on May 22, as the central bank sold dollars heavily in spot market to arrest the fall in Indian rupee, according to data released by the Reserve Bank of India (RBI) on Friday.
The fall in forex reserves was driven by fall in gold and foreign currency asset (FCA) assets. Gold reserves also declined by $4.53 billion to $114.78 billion. FCAs fell by $2.8 billion during the week to stand at $543.03 billion.
FCA reflects reserves held in non-US currencies (such as the euro, yen, and pound sterling) and are actively managed by the Reserve Bank of India (RBI) to stabilise the Indian rupee.
Prime Minister Narendra Modi has also made multiple public appeals to countrymen to conserve forex by cutting down on foreign travel, limiting fuel use and refraining from gold buys for a year.
Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in foreign exchange reserves.
The value of gold reserves also declined $4.53 billion to $114.786 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) were down by $77 million to $18.748 billion, the apex bank said.
India's reserve position with the IMF was also down by $33 million to $4.818 billion at the end of the reporting week, according to the RBI data.
(With PTI inputs.)
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