After rising for weeks, forex reserves down by $2.94 bn to $535.25 bn

After rising for the past few weeks, the country's foreign exchange reserves declined by $2.939 billion to $535.252 billion for the week ended August 14, RBI data showed

After rising for the past few weeks, the country's foreign exchange reserves declined by USD 2.939 billion to USD 535.252 billion for the week ended August 14, RBI data showed on Friday.

In the previous week ended August 7, the reserves had increased by USD 3.623 billion to reach a record high of USD 538.191 billion.

The foreign exchange kitty had crossed the half-a-trillion mark for the first time in the week ended June 5, 2020, after it had swelled by USD 8.223 billion to stand at USD 501.703 billion.

In the week ended August 14, the reserves declined due to a fall in foreign currency assets (FCA), a major component of the overall reserves.

 

FCA dropped by USD 743 million to USD 491.550 billion in the reporting week, the central bank data showed.

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.

The gold reserves slumped USD 2.19 billion in the reporting week to USD 37.595 billion, as per the RBI data.

The special drawing rights with the International Monetary Fund (IMF) declined by USD 2 million to USD 1.479 billion.

The country's reserve position with the IMF also dipped by USD 4 million to USD 4.628 billion during the reporting week.