Forex reserves declined $2.551 billion to $226.445 billion during the week ended August 17, according to data released by the Reserve Bank today - most of it likely because of selling of equities by foreign institutional investors pressured by a global credit crunch caused by the US subprime crisis.Foreign currency assets declined $2.550 billion to $219.103 billion. Gold reserves were unchanged at $6.887 billion. While SDRs increased $1 million to $2 million, Reserve Position in the IMF declined $2 million to $453 million.
