India’s forex reserves drop $10.3 billion to $688 billion amid currency stabilisation efforts

Kolkata: India’s foreign exchange reserves decreased by $10.288 billion in the week to March 27; The Reserve Bank of India is said to use its dollar stockpile to reduce volatility in the local currency; this is the worst-performing currency among its Asian peers this year.

The central bank said Friday that reserves had fallen to $688.058 billion. Another $11.413 billion was deleted from the stock in the previous week.

There has been a steady decline in reserves since the outbreak of the West Asian war. Just before the start of the war, reserves had reached an all-time high of $728.49 billion on February 27.
Foreign exchange assets, an important component of reserves, fell by $6.622 billion to $551.072 billion in the week under review. Reserves held in gold decreased by 3.666 billion dollars to 113.521 billion dollars.

The latest reserves include $18.649 billion in special drawing rights and $4.816 billion in India’s subscription to the International Monetary Fund.