Forex reserves drop by USD 697 mn due to fall in currency assets

The country's foreign exchange reserves declined by USD 697.2 million to USD 428.952 billion in the week to August 2, due to fall in foreign currency assets, the latest weekly RBI data showed.

In the previous reporting week, the reserves had declined by USD 727.1 million to USD 429.649 billion.

The reserves had touched a life-time high of USD 430.376 billion in the week to July 19, 2019.

In the reporting week, foreign currency assets, which are a major component of the overall reserves, reduced by USD 633 million to USD 398.724 billion, the Central bank said on Friday.

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

The country's gold reserves fell by USD 166.4 million to USD 25.163 billion, according to the Central bank data.

Special drawing rights with the International Monetary Fund fell by USD 9.5 million to USD 1.434 billion.

The country's reserve position with the fund rose by USD 111.7 million to USD 3.629 billion.