The country’s foreign exchange reserves declined by $9.98 billion to $671.62 billion in the week ending June 12. The Reserve Bank of India (RBI) gave this information on Friday. Last week, the country’s foreign exchange reserves had declined by $711 million to $681.61 billion.
According to RBI data, foreign currency assets (FCAs), a major part of the currency reserves, increased by $ 846 million to $ 544.29 billion in the week ending June 12. Foreign currency assets in dollar terms also include the impact of fluctuations in the value of non-US currencies such as the euro, pound and yen.
Gold reserves also decreased
During this period, the value of gold reserves decreased by $ 10.75 billion to $ 103.82 billion. RBI said that Special Drawing Rights (SDR) declined by $ 66 million to $ 18.69 billion. In the week under review, India’s reserve position with the International Monetary Fund (IMF) decreased by $ 11 million to $ 4.81 billion.
How was the previous figure?
Earlier, in the week ending June 5, it had declined by $ 711 million to $ 681.61 billion. This information has been given by the Reserve Bank of India (RBI). In the previous week, forex reserves had increased by $938 million to $682.32 billion. However, this time there has been a slight decrease in the total reserves.
Was cautious in monetary policy
Earlier, during the monetary policy, RBI had said that several steps were announced to attract foreign capital and support the rupee amid increasing risks on growth and inflation due to the long-running conflict in West Asia. Along with this, the Reserve Bank of India has estimated the retail inflation rate to be 5.1 percent and the Gross Domestic Product (GDP) growth rate to be 6.6 percent for the financial year 2026-27. Forex reserves are considered a major indicator of the external economic strength of a country. It is used to pay for imports, meet foreign debt responsibilities and to keep the currency market stable when the rupee fluctuates significantly. Reserves of more than $681 billion provide India with strong financial security amid global economic uncertainties.
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