India’s Foreign Exchange Reserves Experience Third Consecutive Weekly Decline

India’s Foreign Exchange Reserves Experience Third Consecutive Weekly Decline

Ira Singh
12 Aug’23

India’s foreign exchange reserves have registered a notable decline for the third consecutive week, raising concerns among economists and policymakers. The decreasing trend, attributed to various domestic and global factors, has raised questions about the country’s economic stability and its ability to weather potential financial challenges.

India’s foreign exchange reserve declined by $2.4 billion to $601 billion in the week ended July 4, latest data by the Reserve Bank of India showed.

The fall in the reserves for the third straight week was mainly on account of a drop in the foreign currency assets, which declined $1.9 billion to $533 billion in the previous week.

The gold reserves, SDRs, and the reserve position in the International Monetary Fund (IMF) experienced a fall of $224 million, $171 million, and $86 million respectively.