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India’s forex reserves decline to $601 billion after two consecutive weekly rise

All major items in the reserves basket witnessed a decline in the week ending June 3, 2022, except for the reserve position in the IMF.

India’s foreign exchange (forex) reserves dipped gradually after two consecutive weekly rises. The country’s forex reserves stay above the $600 billion mark. All major items in the reserves basket witnessed a decline in the week ending June 3, 2022, except for the reserve position in the IMF. Foreign currency assets, a major component of the reserves, weighed the most on the performance.

Data given by RBI showed that India’s total forex reserves stood at $601.057 billion in the week ending June 3, 2022, down by $306 million compared to $601.363 billion in the previous week.

Meanwhile, foreign currency assets declined by $208 million in the week under review to $536.779 billion compared to $536.988 billion in the week ending May 27, 2022.

Further, gold reserves slipped by $74 million in the week ending June 3, to $40.843 billion compared to $40.917 billion in the week ending May 27 this year. Whereas the country’s Special Drawing Rights (SDRs) stood at $18.410 billion lower by $28 million in the week ending June 3 against $18.438 billion of May 27 week.

On the other hand, the reserve position in IMF jumped $5 million to $5.025 billion in the week ending June 3 against $5.019 billion in the previous week.

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India’s forex reserves declined after two consecutive weekly rises

The reserves jumped by $3.854 billion to $601.363 billion in the week ending May 27, and the reserves climbed by $4.230 billion to $597.509 billion in the week ending May 20.

India’s forex reserves have seen a volatile movement due to macroeconomic drawbacks this year. However, notably, the country is still among 12 major economies that merit the list of major trading partners for the United States.

The US Treasury Department released its latest report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners for the country, on June 10.