India’s foreign exchange reserves further fell by $819.5 million to $399.282 billion as on September 7, data from the Reserve Bank of India (RBI) show. Foreign currency assets (FCA), which form a key component of reserves, fell by $887.4 million from the previous week to $375.099 billion. FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen.
Movement in the FCA occurs mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets. Gold reserves rose by $71.9 million to $20.234 billion.
Special drawing rights (SDR) from the International Monetary Fund (IMF) fell by $1.5 million from the previous week to $1.475 billion. SDR is an international reserve asset created by the IMF and allocated to its members in proportion to their quota at the IMF. The reserve position in the IMF witnessed a decrease of $2.5 million to $2.473 billion.
Source: Financial Express