Forex continues to shrink, declines by close to $3 bn again

Continuing its declining trend, the foreign exchange reserves declined by USD 2.889 billion to USD 349.037 billion in the week through September 4 due to the continuing fall in foreign currency assets.
In the previous reporting week, the reserves had fallen sharply by USD 3.433 billion to USD 351.920 billion.
In the last two reporting weeks, the reserves had come down by a whopping USD 6.322 billion.
Reserves had touched an all-time high of USD 355.46 billion in the week to June 19.
Foreign currency assets, which are a major component of the overall reserves, were down by USD 2.650 billion to USD 325.656 billion in the week, according to the latest Reserve Bank data.

Foreign currency assets, expressed in dollar terms, include the effect of appreciation and depreciation of non-US currencies such as the euro, pound and the yen, held in the reserves.
After remaining unchanged for many weeks, the gold reserves slightly declined by USD 214.8 million to USD 18.035 billion.
The country's special drawing rights with the International Monetary Fund fell by USD 18.6 million to touch USD 4.049 billion in the week under review, while the nation's reserve position with the Fund declined by USD 5.9 million to USD 1.289 billion, the apex bank said.