Forex reserves fall sharply by USD 2.3 bn to USD 351.5 bn

After rising for many weeks, the foreign exchange reserves have dipped steeply by USD 2.319 billion to USD 351.557 billion due to a sharp fall in the core currency assets for the week ending May 22, the Reserve Bank said today.
In the previous reporting week, the forex reserves had surged by USD 1.745 billion to touch a record high of USD 353.876 billion.
The foreign currency assets, a major component of the overall reserves, were down USD 2.285 billion to USD 326.839 billion for the week to May 22, the RBI's weekly data release said.
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.

The gold reserves remained stable at USD 19.335 billion, the apex bank said.
The special drawing rights with the International Monetary Fund were down by USD 26.1 million to USD 4.064 billion, while the country's reserve position with the fund also dipped by USD 8.5 million to USD 1.317 billion, the data showed.
According to Deutsche Bank data, the RBI has picked up more than USD 100 billion in forex reserves in the last 18 months.