Forex reserves fall sharply by $3.433 billion to $351.92 billion

Highlights:

  • India's foreign exchange reserves (FER) fell by a whopping $3.4 billion in a single week ending August 28.
  • It  happened due to Reserve Bank of India's dollar sale and the change in valuation of euro, pound and yen against the dollar
  • Reserve Bank of India was seen selling dollars to prevent the rupee from depreciating freely. 
  • Forex reserves now stands at $351.9 billion, the latest data showed.
  • Foreign currency assets, which accounts for 93% of reserves, fell by $3.4 billion to $328.3 billion in the reporting week. Foreign currency assets, also reflect the effect of appreciation and depreciation of non-US currencies such as the euro, pound and the yen, held in the reserves.
  • The country's current level of reserves is enough to pay for nine months of imports.