Foreign exchange fell by FC 2.713 billion as FCA and gold reserves declined

AHMEDABAD: After three consecutive weeks of gains, the foreign exchange reserves have seen a decline again this week. Last week saw a sharp decline in total foreign exchange reserves on the back of selling of foreign funds. The country's foreign exchange reserves declined by ૭ 2.612 billion to ૬૩૭ 2.8 billion in the week ended November 9, the Reserve Bank of India said in a weekly report.

The foreign exchange reserves reached ૪ 20.01 billion in the week ended November 15, an increase of ૯ 25 million. On September 3, 2021, the foreign exchange reserves hit an all-time high of 4.5 billion.

The reason for the decline in total reserves is the reduction of FCA. Foreign currency assets fell by ૪૮ 1.05 billion to ૬૬૪ 2.7 billion during the reporting week.

Foreign currency assets, which account for a significant share of the total reserves. Depreciation of global currencies other than the dollar, such as the euro, pound and yen, against the dollar also affects the FCA.

Apart from this, the country's gold reserves have also declined sharply. Gold reserves fell by ૫૬૬ 1.2 billion to ૮૨૫ 2.3 billion.

According to a report released by the RBI, the SDRs held by the IMF fell by ૪ 2.06 billion to ૯ 16.04 billion. Apart from this, the total reserves held by the IMF have been reduced by ૫ 25 million to ૬૨ 2.18 billion.