Forex Reserves Plummet: A Billion-Dollar Question

India's foreign exchange reserves sharply declined by USD 10.746 billion, marking a consistent drop for the second consecutive week. The reserves, significantly reduced from their peak in September, saw a major decrease in foreign currency assets, gold reserves, SDRs, and the IMF reserve position.

India experienced a significant decline in its foreign exchange reserves, with a reduction of USD 10.746 billion for the week ending October 11. This marked the second consecutive week of diminishing reserves, according to data released by the Reserve Bank of India (RBI) on Friday.

The latest figures highlight a stark decrease from the all-time high of USD 704.885 billion recorded at the end of September. Foreign currency assets, which play a crucial role in the reserve composition, fell by USD 10.542 billion to USD 602.101 billion.

Additionally, gold reserves dropped by USD 98 million, and Special Drawing Rights (SDRs) saw a decrease of USD 86 million. India's standing with the International Monetary Fund also declined by USD 20 million, further indicating the pressures on the reserve position.

(With inputs from agencies.)