India’s Forex Reserves Drop $8.71 Billion to $625.87 Billion as of Week Ending January 10, 2025

India’s foreign exchange reserves dropped by $8.71 billion to $625.87 billion as of week ending January 10, 2025, the Reserve Bank of India said on Friday. The reserves have been on a declining trend for the last few weeks.

Weekly Decline in Forex Reserves

The country’s forex reserves had dropped by $5.69 billion for the week ending January 3 and had settled at $634.58 billion. The decline has been attributed to revaluation and the Reserve Bank of India’s interventions in the foreign exchange market to curb rupee volatility.

According to news reports, the RBI often steps in to manage market liquidity, including selling dollars, to prevent a sharp decline in the rupee’s value.

Decline in Foreign Currency Assets

For the week ending January 10, foreign currency assets, which make up a significant portion of the reserves, dropped by $9.469 billion to reach $536.011 billion, according to data released on Friday.

In dollar terms, foreign currency assets account for the impact of fluctuations in the value of non-U.S. currencies, such as the euro, pound, and yen, held within the foreign exchange reserves.

Gold Reserves See Growth

During the week, gold reserves rose by $792 million, reaching a total of $67.883 billion, as stated by the RBI.

The Special Drawing Rights (SDRs) saw a decline of $33 million, dropping to $17.781 billion, according to the central bank.

India’s reserve position with the IMF decreased by $4 million, standing at $4.195 billion for the reported week, as per the data from the apex bank.

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