India's Forex Reserves Dip for Fifth Consecutive Week Amid RBI Intervention

India's foreign exchange reserves have declined for the fifth straight week, dropping by USD 2.675 billion to USD 682.130 billion, due to RBI's efforts to stabilize the Rupee. The reserves had peaked at USD 704.885 billion. The reserves serve as a buffer against global shocks and economic volatility.

India's foreign exchange reserves have experienced a decline for the fifth consecutive week, registering a drop of USD 2.675 billion, bringing the total to USD 682.130 billion, according to the Reserve Bank of India (RBI) data released on Friday. This downturn follows a record high reached last month.

Previously, the reserves had seen reductions of USD 3.7 billion, USD 10.7 billion, USD 2.16 billion, and USD 3.463 billion over the past three weeks. At their peak, the reserves stood at a remarkable USD 704.885 billion. Analysts attribute the recent decline to RBI's strategic interventions to prevent a sharp depreciation of the Indian Rupee.

A healthy foreign exchange reserve acts as a buffer, protecting domestic economic dynamics from global turbulence. Recent RBI figures indicate that foreign currency assets, the primary component of forex reserves, are valued at USD 589.849 billion, with gold reserves accounting for USD 69.751 billion. These reserves are deemed sufficient to cover around a year's worth of projected imports, highlighting a significant increase from the USD 58 billion added in 2023.

(With inputs from agencies.)