India's foreign exchange reserves (forex) declined by $1.02 billion this week after extending gains in the previous week stabilising at $697.93 billion, official data released by the Reserve Bank of India showed.
The Forex extended their gains, jumping $2.294 billion to $698.950 billion in the week ending June 13. As on June 20, the data shows that the foreign currency assets declined $0.36 billion to $589.07 billion.
Gold reserves were down by $5.73 million to stand at $85.74 billion during the week, the apex bank's data shows while the special drawing rights were down $85 million to $18.67 billion.
Central banks worldwide are increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021, till recently. In 2023, India added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion in 2022. In 2024, the reserves rose by a little over $20 billion.
India's foreign exchange reserves (Forex) are sufficient to meet 11 months of the country's imports and about 96 per cent of external debt, said Governor Sanjay Malhotra while announcing the outcome of the Monetary Policy Committee (MPC) decisions.
The RBI governor expressed confidence, stating that India's external sector is resilient and key external sector vulnerability indicators are improving.
Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.