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1st time in one year, India’s forex reserves fall below $400 billion mark

1st time in one year, India's forex reserves fall below 0 billion mark 1st time in one year,
India’s forex reserves fall below 0 billion mark

The country’s forex reserves declined by USD 819.5 million to
USD 399.282 billion for the week to September 7 — slipping
below the USD 400-billion mark for the first time in over a
year, Reserve Bank data showed Friday. This is the second
consecutive week of major fall in the reserves which indicates
that the central bank has been selling the greenback to fight
the fall in rupee, which had crossed the 73-mark earlier this
week. The local unit closed at 71.84 Friday.

The total reserves had dropped by USD 1.191 billion to USD
400.101 billion in the previous reporting week. In the week to
September 7, foreign currency assets, a major component of the
overall reserves, fell by USD 887.4 million to USD 375.099
billion. Expressed in American dollar terms, foreign currency
assets include the effect of appreciation/depreciation of
non-US currencies such as the euro, pound and yen held in the
reserves.

After remaining stable for years, gold reserves increased by
USD 71.9 million to USD 20.234 billion in the reporting week.
But the special drawing rights with the International Monetary
Fund dipped by USD 1.5 million to USD 1.476 billion. The
country’s reserve position with the Fund also decreased by USD
2.5 million to USD 2.474 billion, the apex bank said.

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