India’s forex reserves drop for the first time after hitting life-time high, now $505.566 billion

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June 26, 2020 7:06 PM

The forex reserves declined for the first time since April 24 when the assets dropped by USD 113 million to USD 479.455 billion.

 

Between April 24 and June 12, forex reserves had grown by USD 28.189 billion.

India’s foreign exchange reserves retreated from a life-time high to touch USD 505.566 billion in the week ended June 19, down by USD 2.078 billion from the previous week, according to the RBI data. The forex reserves declined for the first time since April 24 when the assets dropped by USD 113 million to USD 479.455 billion. Between April 24 and June 12, forex reserves had grown by USD 28.189 billion.

In the week ended June 12, the reserves had increased by USD 5.942 billion to touch a record high of USD 507.644 billion. The reserves had crossed the half-a-trillion mark for the first time in the week ended June 5 after surging by a massive USD 8.223 billion and reached USD 501.703 billion.

In the week ended June 19, the reserves had declined due to the fall in foreign currency assets (FCA), which is a major component of the overall reserves. FCA decreased by USD 1.698 billion to USD 467.039 billion in the reporting week, the RBI data showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves in the reporting week dipped by USD 358 million to USD 32.815 billion, the RBI data showed.

The special drawing rights with the International Monetary Fund (IMF) were down by USD 6 million to USD 1.447 billion. The country’s reserve position with the IMF also reduced by USD 16 million to USD 4.264 billion during the reporting week, the data showed.

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