India’s foreign exchange reserves declined by $2.676 billion to stand at $593.279 billion in the week ended May 13, Reserve Bank of India’s (RBI) data showed on Friday.
In the previous week, the reserves had declined by $1.774 billion to $595.954 billion.
According to an article ‘State of the Economy’, published in the RBI’s Bulletin for May, foreign exchange reserves at $596 billion as on May 6 were equivalent to about 10 months of imports projected for 2022-23.
During the reporting week, the fall in the reserves was mainly on account of a drop in foreign currency assets (FCA), a major component of the overall reserves, and gold reserves, as per weekly data by the Reserve Bank of India (RBI).
FCAs declined by $1.302 billion to $529.554 billion in the week.
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 $1.169 billion to $40.57 billion.
The special drawing rights (SDRs) with the International Monetary Fund (IMF) dipped by $165 million to $18.204 billion, RBI said.
The country’s reserve position with the IMF decreased by $39 million to $4.951 billion in the reporting week, the data showed.