• Source:JND
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The Reserve Bank of India (RBI) reported on Friday that India's foreign exchange reserves fell by $4.8 billion to $670.119 billion for the week ended August 9. In the prior reporting week, the kitty rose $7.533 billion to an all-time high of $674.919 billion. Foreign currency assets, a key component of reserves, declined by $4.079 billion to $587.96 billion for the week ended August 9, data released on Friday showed.

Foreign currency assets include the impact of appreciation or depreciation of non-U.S. units such as the euro, pound, and yen held in foreign currency reserves when expressed in dollar terms. Gold reserves decreased by $860 million to $59.239 billion during the week, the RBI said.

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Special drawing rights (SDRs) rose by $121 million to $18.282 billion, the apex bank said.
India's reserve position with the IMF climbed by $18 million to $4.638 billion in the reporting week, according to central bank data.

As a rule, the RBI intervenes in the market through liquidity management, including periodic dollar sales, to prevent a sharp depreciation of the rupee.

The RBI closely monitors foreign exchange markets and intervenes only to maintain orderly market conditions by curbing excessive exchange rate volatility, without reference to any predetermined target level or band.

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