India's Foreign Exchange Reserves Fall $6.92 Billion to $695.36 Billion in Week Ending Oct 24
India's foreign exchange reserves dropped by $6.92 billion to $695.36 billion in the week ending October 24, marking a significant reversal from the previous week's increase[1][2]. The decline was driven by decreases in foreign currency assets and gold reserves, despite rising gold prices recently boosting the share of gold in reserves[3]. The Reserve Bank of India monitors and intervenes in the forex market to maintain stability.
India's foreign exchange reserves experienced a substantial decline of $6.92 billion, settling at $695.36 billion for the week ended October 24, according to Reserve Bank of India (RBI) data[1][2][5]. This drop followed a notable increase in the previous week, fueled by a rise in gold reserves, which had recently pushed gold's share in total reserves above 15% for the first time due to soaring gold prices[3]. The fall was attributed mainly to decreases in foreign currency assets (down $3.86 billion to $566.55 billion) and gold reserves (down $3.01 billion to $105.54 billion), while Special Drawing Rights (SDRs) at the IMF also declined by $58 million to $18.66 billion[1][2][5]. The reserve position with the IMF saw a slight increase of $6 million. This decline represents the largest weekly drop in 12 weeks and comes as the RBI continues to actively monitor and intervene in the foreign exchange market to ensure stable trading conditions. Despite the recent volatility, India's forex reserves remain significant, reflecting the central bank's ongoing efforts to safeguard the currency and economic stability.
