India’s foreign exchange reserves declining day by day  

India’s foreign exchange reserves have decreased by $ 7.941 billion every week. In August, there has been a big decrease in foreign exchange reserves. To deal with the weakness of the rupee against the dollar, RBI has sold a large number of dollars, which this decrease has been registered in the foreign exchange reserves of the country.

Foreign exchange reserves reached the lowest level in 23 months

India’s foreign exchange reserves hit a 23-month low during the week ended September 2. All components of the Forex reserves showed a decline during the week. The biggest decrease was seen in foreign currency assets. According to the latest data released by the RBI, the country’s foreign exchange reserves stood at $ 553.105 billion in the week ended September 2. It decreased by $ 7.941 billion compared to the previous week. Earlier, during the week ending August 26, India’s foreign exchange reserves stood at $ 561.046 billion.

FCA fell by $6.527 billion

Let us inform you that in the week ending September 2, 2022, the foreign exchange reserves in the country were at the lowest level since October 09, 2020. During this week, FCA (Foreign Currency Assets) declined by $6.527 billion and stood at $492.117 billion. It is worth noting that the largest component of foreign exchange reserves is the FCA itself. Earlier, during the week ending August 26, FCA stood at $498.645 billion.

Major components of foreign exchange reserves, gold reserve, and SDR also decreased

In the week ended September 2, the country’s gold reserves fell by $ 1.339 billion and stood at $38.303 billion. On the other hand, SDR declined by $5 billion every week to $17.782 billion. During this period, the country’s reserve position in the IMF fell by $ 24 million to $ 4902 billion.

Jefferies expressed concern over India’s foreign exchange reserves

Let us tell you that on September 6, an agency named Jefferies said in a note issued on its behalf that India needs to keep an eye on its foreign exchange reserves. It has also been said in this note that India’s trade deficit has reached its record level in the past. Similarly, the current account deficit (CAD) is also at 3.5 percent in the financial year 2022-23, which is moving towards a decade high.