India’s forex reserves dip by $7.54 billion as RBI sells dollars to defend rupee

Mumbai (Maharashtra) [India], July 23 (ANI): India’s foreign exchange (forex) reserves slumped by $7.541 billion to $572.712 billion for the week ended July 15, the lowest level in 20 months, as the Reserve Bank of India (RBI) likely used its war chest to defend the rupee, which recently dipped below 80 against a dollar.

This is the second consecutive week of the sharp drop in the country’s forex reserves. The forex reserves had slumped by $8.062 billion during the week ended July 8. In the last two weeks under review, the forex reserves have declined by $15.603 billion.

According to the Reserve Bank of India’s weekly statistical supplement, all components of the forex reserves fell during the week under review.

India’s foreign currency assets, which are the biggest component of the forex reserves, slumped by $6.527 billion to $511.562 billion during the week ended July 15. The foreign currency assets had declined by $6.656 billion in the previous week.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK’s Pound Sterling and Japanese Yen held in the foreign exchange reserves.

The value of gold reserves fell by $830 million to $38.356 billion during the week ended July 15. The value of gold reserves had declined by $1.236 billion in the previous week.

The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund declined by $155 million to $17.857 billion during the week under review, the RBI data showed.

India’s reserve position in the International Monetary Fund (IMF) dropped by $29 million to $4.937 billion during the week ended July 15, as per the RBI Weekly Statistical Supplement. (ANI)