Foreign Exchange Reserves: The country’s foreign exchange reserves declined by $ 58.7 million to $ 635.08 billion in the week ended December 24. According to the data released by the Reserve Bank of India (RBI), earlier in the week ended December 17, foreign exchange reserves had declined by $ 160 million to $ 635.667 billion. At the same time, in the week ended September 3, 2021, this currency reserves had touched an all-time high of 642.453.
FCA will come down
According to the weekly data of RBI, the reason for the decline in foreign exchange reserves in the reporting week ended December 24 is due to reduction in foreign currency assets (FCA), which is a significant part of the total currency reserves.
The fall in FCA
According to Reserve Bank data, FCA declined by $ 847 million to $ 571.369 billion during the week. Foreign currency assets expressed in dollars also include the movement of non-US currency such as the euro, pound and yen held in foreign exchange reserves.
Increase in gold reserve
During this, gold reserves increased by $ 207 million to $ 39.39 billion. Special drawing rights with the International Monetary Fund (IMF) increased by $24 million to $19.114 billion in the week under review. The country’s currency reserves in the International Monetary Fund increased by $ 28 million to $ 5207 billion.