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India's Forex Reserves Plummet by $4.82 Billion
1 May
Summary
- Foreign exchange reserves decreased by $4.82 billion to $698.49 billion.
- Foreign currency assets and gold reserves contributed to the overall decline.
- The central bank intervened to manage the rupee amidst global economic uncertainties.
India's foreign exchange reserves witnessed a significant decrease of $4.82 billion, bringing the total to $698.49 billion by April 24. This decline followed a period of increase in the preceding week. The Reserve Bank of India (RBI) has been actively intervening in the market to stabilize the rupee, especially in light of prevailing global uncertainties.
The primary drivers of this fall were a reduction in foreign currency assets, which dropped by $2.84 billion to $554.62 billion, and a decrease in gold reserves by $1.90 billion, now valued at $120.24 billion. Special Drawing Rights and India's reserve position with the IMF also saw marginal decreases.
These reserves had previously reached an all-time high of $728.49 billion in late February. However, recent weeks have seen them under pressure, prompting the RBI's interventions to curb rupee volatility without targeting a specific exchange rate.
