India’s foreign exchange reserves dropped again by $7.51 billion to stand at $681.38 billion in the week ended May 22, according to data released by the Reserve Bank of India (RBI) on Friday.Meanwhile, Gold holdings also witnessed a decline, falling by $4.53 billion to $ 114.78 billion. Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) slipped by by $77 million to $18.74 billion.India’s reserve position with the IMF edged lower, declining by $33 million to $4.81 billion during the reporting period.The week prior, the reserves had fallen sharply by $8.09 billion to $688.89 billion. The decline was primarily driven by a fall in foreign currency assets (FCAs), which form the largest share of the country’s reserves. FCAs had decreased by $6.48 billion during the week to stand at $545.90 billion.The RBI continues to closely track developments in the foreign exchange market and intervenes when necessary to contain excessive volatility in the rupee. The central bank has repeatedly maintained that its actions are aimed at ensuring orderly market conditions rather than targeting any specific exchange rate level.
India’s forex reserves fall by $7.51 billion to $681.38 billion as of May 22
India's foreign exchange reserves saw another dip. Reserves fell by $7.51 billion to $681.38 billion in the week ending May 22. This follows a sharp decline the previous week. Foreign currency assets and gold holdings were the main contributors to the decrease. The Reserve Bank of India monitors the market closely.
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