India’s foreign exchange reserves declined by $2.986 billion

The country’s foreign exchange reserves declined by $2.986 billion to reach $579.285 billion in the week ended March 26, RBI data showed on Friday.

In the previous week ended March 19, the forex kitty had increased by $233 million to $582.271 billion. It had touched a record high of $590.185 billion in the week ended January 29, 2021.

In the reporting week ended March 26, 2021, the fall in reserves was on account of a decrease in foreign currency assets (FCA), a major component of the overall reserves.

FCA declined by $3.226 billion to $537.953 billion, as per weekly data by the Reserve Bank of India (RBI).

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 increased by $276 million to $34.907 billion in the reporting week, the RBI data showed.

The special drawing rights (SDRs) with the International Monetary Fund (IMF) dipped by $9 million to $1.49 billion.

The country’s reserve position with the IMF declined by $27 million to $4.935 billion in the reporting week, according to the data.