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The country’s foreign exchange reserves dipped below the crucial $600-billion mark in the week ended April 29, 2022, amid rising global bond yields and weakening currency.
The reserves fell $2.695 billion in the reporting week to stand at $597.728 billion.
In his off-cycle monetary policy statement on May 4, Reserve Bank of India Governor Shaktikanta Das said: “ India’s foreign exchange reserves are sizeable with net forward assets providing a strong back-up. The external debt to GDP ratio remains low at 20 per cent.”
The country’s forex reserves had gone past the $600-billion mark for the first time in the week ended June 4, 2021. In the subsequent weeks, the reserves soared to touch a peak of $642 billion on October 29, 2021.
In the reporting week, all four components of the reserves declined -- foreign currency assets (dropped by $1.11 billion), gold ($1.164 billion), Special Drawing Rights ($362 million) and Reserve Position in the IMF ($59 million).
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