India’s foreign exchange reserves declined $2.164 billion in the week ended April 21, 2023, to stand at $584.248 billion. Despite the fall, the reserves are still at a nine-month high.
In the reporting week, the decline in the reserves was mainly on account of the foreign currency assets (FCAs) shrinking by $2.146 billion.
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Movements in the FCA occur mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of the foreign exchange reserves, external aid receipts of the Central Government and changes on account of revaluation of the assets.
Two other components of the reserves Gold and Reserve Position in the IMF declined marginally by $24 million and $14 million, respectively.
Special Drawing Rights was the only component of the reserves that nudged up $19 million.
Since March-end 2023, the reserves are up by $5.799 billion. However, since the beginning of the current calendar year, the reserves are down by $16.175 billion.