Forex reserves drop by $3 billion to $603.87 billion in 2nd consecutive weekly decline

The Reserve Bank of India (RBI) said on Friday that India's foreign exchange reserves fell by $3.165 billion to a total of $603.87 billion for the week that ended on July 28. This marks the second week in a row that the reserves have decreased, following a decline of U$1.987 billion to a total of $607.035 billion in the previous reporting week.

The sum of foreign currency held by the government of the country reached a new all-time high of $645 billion in October 2021. As a result of the central bank using the reserves to defend the rupee against pressures produced mostly by global developments over the course of the past year, the reserves suffered a loss. According to the Weekly Statistical Supplement that was made available by the RBI, the value of the country's foreign currency assets fell by $2.416 billion to $535.337 billion for the week that ended on July 28. This figure represents a significant component of the reserves.

The value of the foreign currency assets, when expressed in terms of dollars, takes into account the effect of the appreciation or depreciation of non-US units such as the euro, pound, and yen that are held in the foreign exchange reserves. According to the RBI, gold reserves decreased by $710 million to a total of $44.904 billion.

According to the most powerful bank in the world, the Special Drawing Rights (SDRs) fell by $29 million to a total of $18.444 billion. According to the figures provided by the supreme bank, the reserve position held by the nation with the IMF decreased by $11 million to reach $5.185 billion during the reporting week.

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