Forex reserves plunge by $1.40 billion

Mumbai, Dec 25 (IANS) India’s central bank on Friday reported that the country’s foreign exchange reserves (Forex) plunged by $1.40 billion in the week ended December 18.

According to the Reserve Bank of India’s (RBI) weekly statistical supplement, the Forex reserves stood at $351.10 billion for the week under review.

For the previous week ended December 11, the country’s foreign reserves had risen by $407.9 million at $352.50 billion.

The foreign currency assets (FCAs) which constitute the largest component of India’s Forex reserves dwindled by $1.36 billion to $328.26 billion in the week under review.

Apart from the US dollar, FCAs consist of nearly 20-25 percent of other major global currencies, securities and bonds.

The individual movements of these currencies against the US dollar impact the overall foreign reserves’ value.

Notwithstanding the fall in overall Forex value, the country’s gold reserves remained stagnant at $17.54 billion.

Gold reserves had plunged by $1.14 billion at $17.54 billion during the week ended December 4, as international prices crashed to a six-year low.

However, the special drawing rights (SDRs) were lower by $24.3 million at $3.99 billion.

Similarly, the country’s reserve position with the International Monetary Fund (IMF) slipped. It fell by $7.8 million to $1.29 billion.

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