India's forex reserves fall to 3 month low of $560.94 billion

India's foreign exchange reserves dropped USD 325 million to USD 560.942 billion as of February 24, making it the fourth consecutive week of decline in the kitty, the Reserve Bank of India said on Friday.

In the previous reporting week, the overall reserves had declined USD 5.68 billion to USD 561.267 billion.

In October 2021, the forex kitty reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the reserves to defend the rupee amid pressures due to various factors, mainly global developments.

For the week ended February 24, the foreign currency assets, a major component of the reserves, decreased USD 166 million to USD 495.906 billion, according to the Weekly Statistical Supplement released by the RBI.

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 for the fourth week running and were down USD 66 million to USD 41.751 billion.

The Special Drawing Rights (SDRs) also fell USD 80 million to USD 18.187 billion. The country's reserve position with the IMF was down USD 12 million to USD 5.098 billion in the reporting week, as per the RBI data.

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