India’s forex reserves slide by $306 million to $601 billion

Mumbai: India’s foreign exchange (forex) reserves fell by $306 million to $601.057 billion for the week ended June 3 dragged by a sharp decline in the value of foreign currency assets, the Reserve Bank of India (RBI) data showed.

The forex reserves have declined after two consecutive weeks of increase.

The country’s forex reserves had increased by $3.854 billion during the week ended May 27 and $4.23 billion in the previous week. According to the Reserve Bank of India’s weekly statistical supplement, India’s foreign currency assets, which are the biggest component of the forex reserves, fell by $208 million to $536.779 billion for the week ended June 3.

The foreign currency assets had jumped by $3.610 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 $74 million to $40.843 billion during the week under review. The value of gold reserves had increased in the previous two weeks.
The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund fell by $28 million to $18.410 billion during the week ended June 3, the RBI data showed.

However, India’s reserve position in the International Monetary Fund (IMF) increased by $5 million to $5.025 billion, as per the RBI Weekly Statistical Supplement.