India's Forex Reserves Decline by $678 Million to $634.28 Billion

India's foreign exchange (forex) reserves fell by $678 million to $634.28 billion in the week ended January 21 due to a sharp decline in foreign currency assets, the Reserve Bank of India (RBI) data showed.

The foreign currency assets, which is the biggest component of the forex reserves, dipped by $1.115 billion to $569.582 billion during the week under review, according to the RBI's weekly statistical supplement.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK's Pound Sterling, and Japanese Yen held in the foreign exchange reserves.

The value of India's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) declined by $68 million to $19.152 billion, while India's reserve position in the IMF dropped by $22 million to $5.216 billion.

However, there was a sharp increase in the value of gold reserves. The value of gold reserves rose by $567 million to $40.337 billion in the week ended January 21, 2022.