India’s Forex Reserves Hit 8-Month Low, Fall $4.11 Billion to $640.27 Billion

Last Updated: January 04, 2025, 09:24 IST

India’s foreign exchange books dropped by one more $4.112 billion throughout the week finished December 27, 2024, as the Reserve Bank of India marketed $4.641 billion to help in reducing volatility in the rupee.

India’s fx (foreign exchange) books decreased by $4.112 billion to an eight-month low of $640.279 billion throughout the week finished December 27, according to the most up to date RBI information. In the previous week, the general feline had actually visited $8.478 billion to $644.391 billion.

India’s foreign exchange books have actually been decreasing for the previous couple of weeks, and the loss has actually been credited to revaluation together with foreign exchange market treatments by the RBI to help in reducing volatility in the rupee. The foreign exchange books had actually raised to an all-time high of $704.885 billion in end-September

“The foreign exchange books dropped by one more $4.112 billion to $640.279 billion as the Reserve Bank of India (RBI) marketed $4.641 billion,” Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said.

He added that it seems that the RBI was buying dollars from in the NDF (non-deliverable forwards)/futures to close its month-end maturing open short dollar positions. This was the week when the rupee fell from 84.99 to 85.82 before closing at 85.5325.

For the week ended December 27, foreign currency assets, a major component of the reserves, decreased by $4.641 billion to $551.921 billion.

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 increased by $541 million to $66.268 billion during the week. The special drawing rights (SDRs) were down by $12 million to $17.873 billion, according to the RBI.

India’s reserve position with the IMF was unchanged at $4.217 billion in the reporting week, the apex bank data showed.