India’s forex exchange reserves dropped by $22.2 million as on November 3 to $398.739 billion, data from the RBI shows. Foreign currency assets, which form a key component of reserves, rose by $547.80 million from the previous week to $374.320 billion. FCAs are maintained in major currencies like US dollar, euro, pound sterling, Japanese yen etc. Movement in the FCA occur mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.
Gold reserves fell by $573.60 million to $20.66 billion. Special drawing rights (SDR) from the International Monetary Fund rose by $1.4 million from the previous week to $1.49 billion. SDR is an international reserve asset created by the IMF and allocated to its members in proportion of their quota at the IMF. The Reserve Position in the IMF rose by $2.2 million to $2.26 billion.