Forex reserves fall to 2-year low of $524 billion

Foreign exchange reserves fell $3.8 billion to a two-year-low of $524.52 billion in the week ended October 21, data released by Reserve Bank of India (RBI) on Friday revealed.

This is the lowest level at which foreign exchange reserves have fallen since July 2020.

The slide has occurred mainly due to a fall in RBI's foreign currency assets, which fell to $465.08 billion in the week ended October 21. Foreign exchange reserves have fell by more than $100 billion since Russia invaded Ukraine in February this year.

On February 25, the day Russia invaded Ukraine, forex reserves were at $631.53 billion. Last month, RBI Governor Shaktikanta Das had said that 67 per cent of the fall in reserves during the current fiscal was due to revaluation in the face of a stronger dollar.