India’s foreign exchange (forex) reserves slumped by $5.87 billion to $590.588 billion for the week ended June 17 as foreign portfolio investors pulled money out of the Indian equities amid mounting concerns of global recession, the Reserve Bank of India (RBI) data showed.
The country’s forex reserves had dropped for the third consecutive week. It has slumped by $10.785 billion in the past three weeks under review. The forex reserves had declined by $4.59 billion in the week ended June 10, 2022.
According to the Reserve Bank of India’s weekly statistical supplement, India’s foreign currency assets, which are the biggest component of the forex reserves, slumped by $5.362 billion to $526.882 billion during the week ended June 17. The foreign currency assets had dipped by $4.53 billion in the previous week. Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK’s Pound Sterling and Japanese Yen held in the foreign exchange reserves.
All components of the country’s foreign exchange reserves declined during the week under review. The value of gold reserves fell by $258 million to $40.584 billion during the week ended June 17.
The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund fell by $233 million to $18.155 billion during the week under review, the RBI data showed. India’s reserve position in the International Monetary Fund (IMF) dropped by $17 million to $4.968 billion during the week ended June 17, as per the RBI Weekly Statistical Supplement.