India's gold reserves fell sharply by USD 824.2 million as the metal's prices weakened globally, but gains in currency assets limited the dip in overall forex reserves...
India’s gold reserves fell sharply by USD 824.2 million as the metal’s prices weakened globally, but gains in currency assets limited the dip in overall forex reserves, which were down USD 187.6 million at USD 353.46 billion for the week ended July 31.
The overall reserves had risen by USD 321.7 million to USD 353.648 billion in the previous reporting week.
After staying unchanged for some weeks, the recent fall in the gold prices seemed to have hit the gold reserves hard, which were down USD 824.2 million to USD 18.25 billion in the period under review, the Reserve Bank said today.
Gold prices continued to fall in the international markets with the current week marking the steepest drop in bullion prices since 1999 as the yellow metal closed below Rs 2,500 per gram level.
Foreign currency assets (FCAs), a major component of overall reserves, rose by USD 629.9 million to USD 329.875 billion in the week, the data showed.
FCAs, expressed in dollar terms, include the effect of appreciation and depreciation of non-US currencies such as the euro, pound and the yen, held in the reserves.
The special drawing rights with the International Monetary Fund were up by USD 4.9 million to USD 4.029 billion for the week under review, while the country’s reserve position with the Fund also rose by USD 1.7 million to USD 1.306 billion, RBI said.