India’s foreign exchange reserves declined $5.219 billion in the week ended September 16 to stand at $545.652 billion.
The fall is partly due to the Reserve Bank of India’s defence of the Indian currency, which is weakening along with most global currencies against the Dollar, as the US Fed continues to aggressively raise interest rates to stamp out inflation.
In the reporting week, all four components of the reserves declined -- foreign currency assets (dropped by $4.698 billion), gold ($458 million), Special Drawing Rights ($32 million) and Reserve Position in the IMF ($31 million).
During the calendar year so far, the reserves shrunk by $93.990 billion. Since March-end to till date, the reserves have dwindled by $61.657 billion.