India's FX reserves have a $8.13 billion deficiency due to declining foreign currency holdings.
According to the Weekly Statistical Supplement provided by the RBI, the decline in reserves for the week ending September 23 was caused by a decline in foreign currency assets (FCA), a significant portion of the total reserves.
The overall reserves for the country decreased by USD 8.134 billion to USD 537.518 billion for the week ending September 23, according to RBI statistics released on Friday.
The reserves had dropped by more than USD 5.2 billion to USD 545.54 billion in the previous reporting week. The reserves have been declining as the central bank uses its funds to protect the rupee against global volatility.
According to the Weekly Statistical Supplement published by the RBI, the decrease in reserves for the week ending September 23 was caused by a decline in foreign currency assets (FCA), a significant portion of the total reserves. The FCA fell by USD 7.688 billion during the reporting week, reaching USD 477.212 billion.
The foreign currency assets, which are expressed in dollar terms, indicate the value of non-US currencies held in foreign exchange reserves, such as the euro, pound, and yen.. According to the statistics, the gold reserves' value fell by USD $300 million to USD 37.886 billion.
To reach USD 17.594 billion, the Special Drawing Rights (SDRs) decreased by USD 93 million. According to the data, the nation's reserve position with the IMF decreased by USD 54 million to USD 4.826 billion in the reporting week.
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