Forex reserves decline by USD 1.425 bn on a dip in currency assets

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India’s forex reserves declined by USD 1.425 billion to USD 631.527 billion for the week ended in February 25 due to a dip in currency assets, according to the Reserve Bank data released on Friday.

The overall reserves had increased by USD 2.762 billion to USD 632.952 billion in the previous reporting week.

During the reporting week, the foreign currency assets (FCA) declined by USD 2.228 billion to USD 564.832 billion.

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 value of the gold reserves continued its northward journey and increased by USD 958 million to USD 42.467 billion in the reporting week, the data showed.

The special drawing rights (SDRs) with the International Monetary Fund (IMF) decreased by USD 122 million to USD 19.04 billion, the RBI said.

The country’s reserve position with the IMF also decreased by USD 34 million to USD 5.187 billion in the reporting week, the data showed. (PTI)