India’s foreign exchange reserves fell by $1.126 billion to $361.994 billion as on May 6, data from the Reserve Bank of India (RBI) shows.
Foreign currency assets (FCAs), which form a key component of the reserves, fell by $1.028 billion from the previous week to $337.996 billion.
FCAs are maintained in major currencies such as dollar, euro, pound sterling, yen, etc. However, foreign exchange reserves are denominated and expressed only in dollar.
Movements in 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 central government and revaluation of the assets.
Gold reserves fell by $72 million to $20.043 billion. Special drawing rights from the IMF rose by $0.1 million from the previous week to $1.510 billion. SDR is an international reserve asset created by the IMF and it is allocated to its members in proportion to their quota at the IMF.