India's Forex Reserves Drop by $2 Billion: RBI Reports

India's foreign exchange reserves decreased by USD 2.027 billion to USD 646.673 billion in the week ending May 24. Significant declines were observed in foreign currency assets and gold reserves, with other components like SDRs and India's IMF position also showing minor reductions.

India's forex reserves dropped by USD 2.027 billion to USD 646.673 billion for the week ended May 24, the Reserve Bank said on Friday.

In the previous reporting week, the kitty had reached an all-time high of USD 648.7 billion after a jump of USD 4.549 billion.

For the week ended May 24, foreign currency assets, a major component of the reserves, decreased by USD 1.51 billion to USD 567.499 billion, the data released on Friday showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves decreased by USD 482 million to USD 56.713 billion during the week. The Special Drawing Rights (SDRs) were down by USD 33 million to USD 18.135 billion.

India's reserve position with the IMF was also down by USD 1 million to USD 4.326 billion in the reporting week, the apex bank data showed.