India’s forex reserves fell by $11.173 billion to $606.475 billion for the fourth consecutive week in the week ended April 1, the biggest weekly decline ever.
According to the analysts that the sharp fall in global currency volatility due to the strengthening of the US dollar can be attributed to the fall in forex reserves.
In its weekly statistical supplement released here on Friday, the Reserve Bank of India (RBI) said foreign currency assets, which form a major part of forex reserves, had fallen by $10.727 billion to $539.727 billion during the week.
Foreign currency assets, expressed in terms of US dollars, include the effect of depreciation or depreciation held in reserves of non-US currencies such as the euro, pound and yen.
The country’s reserve position with the International Monetary Fund (IMF) rose by $4 million to $5.136 billion during the week, the bulletin said.
Despite the perceived shortfall in foreign exchange reserves, India maintains its ranking at the fourth position. Switzerland, Japan and China are ahead of India in terms of foreign exchange reserves. The 5th position is held by Russia, which is facing a decline in its foreign exchange due to the ongoing war between Russia and Ukraine.