India’s foreign exchange reserves fall by another $4.9 billion

India’s foreign exchange reserves fell by another $4.9 billion in the week to September 30 as the Reserve Bank of India possibly sold dollars to stabilise the exchange rate movement in the local market. The fall is partly due to depreciation of RBI‘s holdings of other major global currencies.

The forex reserves stood at $532.664 billion at the end of the reporting week, RBI’s data showed.

This means, reserves got depleted by an unprecedented $110 billion from $642.453 billion seen on September 3 last year.

The central bank does not provide reasons behind forex reserves movement. However Governor Shaktikanta Das said last week that 57% of the dip in reserves was due to valuation changes.

Global currencies such as euro, pound and yen depreciated against dollar by as much as 13.2%, 18.2% and 18.2% in this fiscal so far, Acuite Ratings said in a report.

Out of the current reserves, foreign currency assets stood at $472.807 billion. Reserves held in gold are valued at $37.605 billion. The balance is kept with the International Monetary Fund as special drawing rights and reserves.