India’s forex reserves dip by $396 mn to $702.57 bn as on Sept 19

India’s foreign exchange reserves decreased by $396 million to $702.57 billion as on September 19, data released by the Reserve Bank of India (RBI) showed on Friday.

The reserves had surged by $4.69 billion to $$702.9 billion for the week ending September 12; while it had touched a record high of $704.885 billion in end-September 2024.

For the week ended September 19, foreign currency assets (FCAs) — the largest component of the reserves — declined by $864 million to $586.15 billion, the RBI data showed. In dollar terms, FCAs also reflect the impact of movements in non-US currencies such as the euro, pound and yen held in the reserves.

Gold reserves were up by $360 million, standing at $92.78 billion during the reporting week. Meanwhile, SDRs in the last week were up by $105 million to reach at $18.88 billion.

India’s reserve position with the International Monetary Fund (IMF) was up by $2 million at $4.76 billion.

The RBI, from time to time, intervenes in the forex market through liquidity operations — including the sale of dollars — to curb sharp volatility in the rupee. Officials emphasize that such interventions are aimed at maintaining orderly market conditions rather than targeting a specific exchange rate level or band.

Source: Economictimes