India's Forex Reserves Witness Turbulent Decline

India's forex reserves decreased by USD 2.163 billion, reaching USD 688.267 billion as of October 18, marking another significant decline following a USD 10.746 billion drop the previous week. Major components like foreign currency assets contributed to the drop, alongside declines in SDRs and IMF reserves, despite gold reserves increasing.

The Reserve Bank of India announced a notable drop in the nation's forex reserves by USD 2.163 billion, taking the total to USD 688.267 billion for the week ending October 18. This decline follows a previous reduction of USD 10.746 billion, one of the largest in recent history.

Crucially, foreign currency assets, which constitute a significant portion of the reserves, fell by USD 3.865 billion, settled at USD 598.236 billion. This was compounded by minor losses in SDRs and IMF reserves amounting to USD 68 million and USD 16 million, respectively.

In contrast, India's gold reserves saw an increase of USD 1.786 million, bringing the total to USD 67.444 billion, offering some respite amid the broader downtrend in reserves.

(With inputs from agencies.)