India's forex reserves drop by USD 329 million to USD 578.45 billion

India's forex reserves dropped by USD 329 million to USD 578.449 billion for the week ended March 31, on decline in gold reserves, the RBI said on Friday. The forex kitty had risen handsomely in the previous two reporting weeks, and rose by USD 5.977 billion to USD 578.778 billion for the week ended March 24.

For FY23, the overall kitty has dropped by USD 28.86 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion.

The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. For the week ended March 31, the foreign currency assets, a major component of the reserves, decreased by USD 36 million to USD 509.691 billion, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI) on Friday.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves decreased by USD 279 million to USD 45.20 billion, the RBI said.

The Special Drawing Rights (SDRs) were down by USD 27 million to USD 18.392 billion, the apex bank said. The country's reserve position with the IMF was up by USD 14 million to USD 5.165 billion in the reporting week, the apex bank data showed.

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