India Forex Reserve Data: There has been a big decline in India’s foreign exchange reserves for the third consecutive week. In the week ending February 17, 2023, the foreign exchange reserves have come down by $ 5.68 billion to $ 561.27 billion. That is, there has been a decline of more than $ 15 billion in foreign exchange reserves in three weeks.
The Reserve Bank of India has released this data regarding foreign exchange reserves. According to these figures, the foreign exchange reserves declined by $5.68 billion to $561.27 billion in the week ending February 17, 2023, from $566.94 billion in the week ending February 10 and $575.27 billion in the week ending February 3, 2023. This is the third consecutive week when foreign exchange reserves have declined. In the last three weeks, there has been a decrease of about $ 15 billion in foreign exchange reserves. On February 10, the foreign exchange reserves had decreased by $ 8.31 billion, which was the biggest decline in 11 months.
In the same period, foreign currency assets have decreased by $ 4.52 billion to $ 496.07 billion. In the same period, there has been a decrease of $ 1.04 million in the gold reserve. Gold reserves have come down to $41.82 billion, while SDRs have declined by $87 million to $18.26 billion.
Earlier in October 2021, foreign exchange reserves had reached a historic level of $ 645 billion. Since then, there has been a steady decline in foreign exchange reserves due to increase in interest rates due to abysmal inflation and selling by foreign investors following Russia’s attack on Ukraine. Foreign investors have been withdrawing their investments. Due to this, there was a weakness in the rupee, so to hold the rupee, the RBI had to sell dollars from its reserves. Rupee had reached the level of Rs 83 against one dollar, after which RBI had to sell dollars. On Friday, the rupee has closed at the level of 82.75 against one dollar.
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