New Delhi [India], January 11 (ANI): India’s overseas alternate reserves dropped sharply, by USD 9.809 billion within the week that ended January 2, to USD 686.801 billion, pushed by a stoop in each gold reserves and overseas foreign money belongings, the Reserve Bank of India’s newest ‘Weekly Statistical Supplement’ knowledge confirmed.
Over the previous few weeks, the foreign exchange kitty has been largely in an uptrend.
The nation’s overseas alternate (foreign exchange) kitty has been hovering near its all-time excessive of USD 704.89 billion, reached in September 2024.
For the reported week (that ended January 2), India’s overseas foreign money belongings (FCA), the biggest part of overseas alternate reserves, stood at USD 551.990 billion, down USD 7.622 billion.
The RBI knowledge confirmed that gold reserves presently stand at USD 111.262 billion, down USD 2.058 billion from the earlier week.
The worth of the safe-haven asset gold has been on a pointy uptrend over latest months, maybe amid heightened international uncertainties and strong funding demand.
After the newest financial coverage assessment assembly in early December, the RBI had mentioned that the nation’s overseas alternate reserves have been adequate to cowl greater than 11 months of merchandise imports.
Overall, India’s exterior sector stays resilient, and the RBI is assured it will possibly comfortably meet exterior financing necessities.
In 2025, the foreign exchange kitty has elevated by about 56 billion, in accordance with knowledge.
In 2024, reserves rose by simply over USD 20 billion.
In 2023, India added round USD 58 billion to its overseas alternate reserves, contrasting with a cumulative decline of USD 71 billion in 2022.
Foreign alternate reserves, or FX reserves, are belongings held by a nation’s central financial institution or financial authority, primarily in reserve currencies such because the US dollar, with smaller parts within the Euro, Japanese Yen, and Pound Sterling.
The RBI typically intervenes by managing liquidity, together with promoting {dollars}, to stop a steep depreciation of the rupee. The RBI strategically buys {dollars} when the Rupee is robust and sells when it weakens. (ANI)