India’s foreign exchange reserves decline by $2.164 bn, still at a nine-month high

India’s foreign exchange reserves decreased by $2.164 billion in the week ending April 21, 2023, to stand at $584.248 billion. Despite the decline, reserves are still at a nine-month high.

In the reporting week, the decline in reserves was mainly due to a $2.146 billion contraction in Foreign Currency Assets (FCAs).

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Movements in the FCA mainly occur on account of purchase and sale of foreign exchange by the Reserve Bank of India, income generated by the publication of foreign exchange reserves, receipts of foreign aid to the central government and changes on account of revaluation of assets.

Two other components of gold reserves and reserve position in the IMF were marginally down by $24 million and $14 million, respectively.

The SDR was the only component of the reserves, which raised $19 million.

Since the end of March 2023, reserves have increased by $5.799 billion. However, since the beginning of the current calendar year, reserves have decreased by $16.175 billion.