Forex kitty logs second consecutive weekly decline, dips USD 2.28 bn to USD 640.33 bn

India's foreign exchange reserves fell by $2.282 billion to $640.334 billion in the week ending April 19, marking the second consecutive week of decline. The decline is attributed to the central bank's intervention in the market to support the rupee amid global pressures. Foreign currency assets, a major component of the reserves, decreased $3.793 billion to $560.86 billion. Gold reserves rose by $1.01 billion to $56.808 billion, while Special Drawing Rights (SDRs) and India's reserve position with the IMF declined marginally.

India's forex reserves decreased USD 2.282 billion to USD 640.334 billion for the seven days ended April 19 in the second consecutive week of drop in the kitty, the Reserve Bank of India (RBI) said on Friday.

The reserves had dropped USD 5.401 billion to USD 643.162 billion in the previous reporting week, ending a multi-week trend of an increase, which also saw the overall reserves touching a new all-time high of USD USD 648.562 billion for the week ended April 5.

In September 2021, the country's forex kitty had reached a high of USD 642.453 billion, which was breached in March this year. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global events, but there had been a steady accretion over the past few months.

For the week ended April 19, the foreign currency assets, a major component of the reserves, decreased USD 3.793 billion to USD 560.86 billion, according to the data released on Friday. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.

Gold reserves continued to rise and increased USD 1.01 billion to USD 56.808 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down USD 43 million to USD 18.034 billion, the apex bank said.

India's reserve position with the IMF was also down USD 2 million to USD 4.631 billion in the reporting week, the apex bank data showed.

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