India’s Forex Reserves Drop $8.4 Billion to $644.39 Billion

India’s foreign exchange reserves dropped by $8.4 billion to $644.39 billion as of December 20, 2024, marking a decline to over a 7-month low. The reserves had reached a record high of $705 billion in the week ending September 27, 2024.

Reserves Declined Last Week

For the week ending December 13, 2024, India’s foreign exchange reserves fell by $1.98 billion bringing the total to $652.87 billion.

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

As of December 20, 2024, India’s Foreign Currency Assets (FCA) stood at $556.56 billion, marking a decrease from $562.58 billion on December 13, 2024. This decline of approximately $6 billion.

These assets are influenced not only by the RBI’s market actions but also by the appreciation or depreciation of non-US dollar currencies, such as the euro, pound, and yen, which are part of the reserves.

Gold Reserves See a Modest Decline

As of December 20, 2024, India’s gold reserves were valued at $65.73 billion, showing a decrease from $68.06 billion on December 13, 2024. This reduction of around $2.33 billion.

India’s Special Drawing Rights (SDRs) stood at $17.88 billion, slightly down from $17.99 billion on December 13, 2024.

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