India's forex reserves decline by $4.88 billion to $685.72 billion in week ended May 16

India’s foreign exchange reserves fell by $4.888 billion to $685.729 billion for the week ended May 16, the Reserve Bank of India (RBI) reported on Friday. This follows a rise of $4.553 billion to $690.617 billion recorded in the previous week. The country’s forex reserves had reached a record high of $704.885 billion in September 2024.

For the week ended May 16, foreign currency assets—a key component of the reserves—increased by $279 million to $581.652 billion, according to RBI data released on Friday, PTI reported. These assets reflect the impact of appreciation or depreciation of non-US currencies such as the euro, pound, and yen held in the reserves.

After a sharp increase of $4.52 billion in the prior week, gold reserves declined by $5.121 billion to $81.217 billion during the reporting period.

Special Drawing Rights (SDRs) fell by $43 million to $18.49 billion, while India’s reserve position with the International Monetary Fund (IMF) decreased by $3 million to $4.371 billion, the RBI data showed.

Earlier for the week ended on May 9, India’s foreign exchange reserves rose by $4.553 billion to $690.617 billion, driven primarily by a significant increase in gold assets, according to data released by the Reserve Bank of India (RBI). This marked a reversal from the previous reporting week, when reserves had declined by $2.065 billion to $686.064 billion. The reserves had reached a record high of $704.885 billion at the end of September 2024.

During the week under review, foreign currency assets (FCAs)—the largest component of the forex reserves—registered a modest rise of $196 million, reaching $581.373 billion. The FCAs, expressed in dollar terms, reflected the impact of currency movements such as the appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the reserves.