Foreign exchange reserves as on January 1 fell by $1.68 billion from a week ago to $350.36 billion, according to data from the Reserve Bank of India.
Foreign currency assets (FCAs), which form a key component of the reserves, fell by $1.36 billion from the week before to $327.82 billion.
FCAs are maintained in major currencies such as dollar, euro, pound sterling, Japanese yen, etc. However, foreign exchange reserves are denominated and expressed in US dollar only.
The movements in the FCAs occur mainly on account of purchase and sale of foreign exchange by the RBI in the foreign exchange market in India, income arising out of the deployment of the foreign exchange reserves, external aid receipts of the government and revaluation of the assets.
Gold reserves have fallen by $303.70 million to $17.24 billion, while special drawing rights (SDR) from the International Monetary Fund fell by $10 million to $4.003 billion. SDR is an international reserve asset created by the IMF and allocated to its members in proportion of the members’ quota at the agency.
The country’s reserve position in the IMF stood at $1.297 billion, down $3.3 million from the previous week.