India’s Forex Reserves Take A $2 Billion Dip From Historic Peaks

India’s foreign exchange reserves dropped by slightly more than USD 2 billion in the week ending May 24, stepping back from their recent peak. The reserves currently stand at USD 646.673 billion.

In the preceding week, the reserves surged for the third consecutive week, increasing by USD 4.549 billion to reach USD 648.700 billion, as per data released by the Reserve Bank of India (RBI). This ascent marked a new record high for the reserves.

Before those three weeks, the foreign exchange reserves had experienced a decline for three consecutive weeks. As per the most recent data from the Reserve Bank of India (RBI), India’s foreign currency assets (FCA), which make up the largest part of the forex reserves, decreased by USD 1.510 billion to USD 567.499 billion.

During the week, the gold reserves decreased by $482 million, bringing the total to $56.713 billion. As per an RBI report, India’s foreign exchange reserves are now adequate to cover approximately 11 months of anticipated imports.