India’s foreign exchange reserves declined by $1.713 billion to $651.997 billion for the week ending June 28, according to the latest RBI data released on Friday. This follows a previous decline of $2.922 billion in the prior week.
The country’s forex reserves had touched an all-time high of $655.817 billion as on June 7 this year.
Sanjeev Agrawal, president of the PHD Chamber of Commerce and Industry, said, “Demonstrating resilience in the face of geopolitical unpredictability and an uncertain global economic landscape, India’s foreign exchange reserves stand steadily at over $651 billion, as of June 28, 2024.”
The forex market is stable due to India’s strong capital market, robust exports, high economic growth trajectory, and attractiveness to foreign investors, he added.
Key Components of Forex Reserves
Gold Reserves: Gold reserves saw a reduction of $427 million during the week ended June 28, settling at $56.528 billion for the week, according to the latest RBI data.
Special Drawing Rights (SDRs): SDRs decreased by $35 million, amounting to $18.014 billion.
Foreign Currency Assets: The primary component of the forex reserves, foreign currency assets, decreased by $1.252 billion, totalling $572.881 billion. These assets include the impact of fluctuations in non-US currencies like the euro, pound, and yen held in the reserves.
IMF Reserve Position: India’s reserve position with the International Monetary Fund (IMF) increased by $1 million, reaching $4.573 billion.
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