Forex Reserves Plummet by $8 Billion to $688.894 Billion

India's Forex Reserves Drop to $688.894 Billion

India's foreign exchange reserves have declined by $8.094 billion to $688.894 billion during the week ended May 15, according to data released by the Reserve Bank of India (RBI).

This marks a significant drop from the previous week's reserves, which had jumped by $6.295 billion to $696.988 billion during the week ended May 8. The RBI's data shows that foreign currency assets, a major component of the reserves, decreased by $6.483 billion to $545.904 billion during the week ended May 15.

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The value of India's gold reserves also declined, dropping by $1.536 billion to $119.317 billion during the week. Additionally, the special drawing rights (SDRs) were down by $49 million to $18.824 billion, and the reserve position with the International Monetary Fund (IMF) was also down by $25 million to $4.85 billion.

The RBI's data comes as Prime Minister Narendra Modi has made multiple public appeals to conserve foreign exchange by cutting down on foreign travel, limiting fuel use, and refraining from gold buys for a year. The rupee has come under pressure in recent weeks, leading to a drop in the country's forex reserves.