India's Forex Reserves Down by $1.31 Billion to $656.58 Billion - See Numbers

India’s foreign exchange reserves have decreased by $ 1.31 billion, bringing the total to $ 656.58 billion for the week ending November 22, according to data released by the Reserve Bank of India (RBI).
This drop follows a significant fall of $ 17.76 billion in the previous week, ending November 15, when reserves had stood at $ 657.89 billion. The recent declines in India’s forex reserves mark a continuation of a downward trend that began after the reserves hit a record high of $ 704.88 billion at the end of September 2023. The reduction in reserves coincides with a period of increasing pressure on the Indian rupee, which has been under strain amid global economic uncertainties and domestic factors.

The largest component of India’s forex reserves is foreign currency assets, which saw a decrease of $ 3.04 billion, dropping to $ 566.79 billion for the week ending November 22. These assets include the impact of exchange rate fluctuations of non-US currencies such as the euro, pound, and yen, which contribute to the overall value in US dollar terms.

In contrast to the drop in foreign currency assets, India’s gold reserves showed a positive movement, rising by $ 1.83 billion to $ 67.57 billion. Special Drawing Rights (SDRs), another key component of the reserves, fell by $ 79 million to $ 17.99 billion, while India’s reserve position with the International Monetary Fund (IMF) declined by $ 15 million, reaching $ 4.23 billion.

The decline in reserves reflects ongoing challenges for India’s external position, highlighting the vulnerability of the rupee and the country's balance of payments as global economic conditions remain volatile.