SME Times News Bureau | 18 Aug, 2018
Forex reserve of the country plunged by $1.82
billion during the week ended August 10, official data showed on Friday.
According to the Reserve Bank of India (RBI)
weekly statistical supplement, the overall forex reserves plunged to $400.88
billion from $402.70 billion reported for the week ended August 3.
A strong US dollar and subsequent
interventions by the country's central bank to stabilise the rupee drained over
$1.80 billion from India's foreign exchange (forex) reserves.
The RBI is known to enter the markets
via intermediaries to either sell or buy US dollars to keep the rupee in a
India's forex reserves comprise of foreign currency assets (FCAs), gold
reserves, special drawing rights (SDRs) and the RBI's position with the
International Monetary Fund (IMF).
Segment-wise, FCAs -- the largest component of the Forex reserves -- receded by
$1.94 billion to $376.26 billion during the week under review.
Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global
However, the value of the country's gold reserves increased by $145.6 million
to $20.69 billion.
As per the data, the SDRs' value slipped by $9.2 million to $1.46 billion,
while the country's reserve position with the IMF inched down by $9.2 million
to $2.45 billion.