India’s foreign exchange reserves fell by $2.648 billion to $415.053 billion as on May 18, data from the Reserve Bank of India (RBI) show. Foreign currency assets (FCA), which form a key component of reserves, fell by $2.633 billion from the previous week to $389.820 billion. FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen.
Movement in the FCA occurs mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.
Gold reserves rose by $13 million to $21.70 billion. Special drawing rights (SDR) from the International Monetary Fund (IMF) fell by $14.2 million from the previous week to $1.501 billion. SDR is an international reserve asset created by the IMF and allocated to its members in proportion to their quota at the IMF.