During the week ended March 20, the forex reserves had fallen by as much as $11.983 billion, the steepest fall since the global crisis of 2008.
India’s foreign exchange reserves fell by $902 million during the week ended April 3, as the central bank intervened to stem the fall of the rupee that continues to trade below the 76-mark against the US dollar. As per data from the Reserve Bank of India (RBI), the total reserves stood at $474.66 billion as on April 3.
As the rupee remained volatile over the past few weeks, with foreign portfolio investors pulling out Rs 1.18 lakh crore in March amid the Covid-19 pandemic, the central bank has been intervening in the market. On April 9, the rupee closed at 76.2925 against the greenback.
Over the past six months, the forex reserves continued to grow before falling amid the Covid-19 pandemic. During the week ended March 20, the forex reserves had fallen by as much as $11.983 billion, the steepest fall since the global crisis of 2008.
Compared to the year-ago period, the forex reserves have risen by $60.879 billion as on April 3. Since the previous week, foreign currency assets (FCA), which form a key component of reserves, fell by $547 million to $439.116 billion over the past week. Movement in the FCA, which are maintained in major currencies like the dollar, euro, pound and Japanese yen, occurs mainly on account of purchase or sale of foreign exchange by the RBI, income arising out of the deployment of forex reserves, external aid receipts of the government and revaluation of assets.
Gold reserves fell by $340 million to $30.55 billion. Special drawing rights (SDR) from the International Monetary Fund (IMF) rose by $5 million to $1.427 billion.
SDR is an international reserve asset created by the IMF and allocated to its members in proportion of their quota. The reserve position in the IMF fell by $19 million to $3.566 billion, according to RBI data.