<p>India's <a href="https://www.mid-day.com/business/business-news/article/india-better-positioned-to-tackle-rupee-challenges-despite-short-term-pressures-bank-of-baroda-23431026" target="_blank" rel="none noopener">foreign exchange reserves</a> have been steadily declining for three months, ANI reported.</p>
<p>In the week that ended December 27, the country's foreign exchange kitty declined by USD 4.112 billion to USD 640.279 billion ,as per RBI data, ANI cited.</p>
<p>India's forex reserves have slumped twelve out of the thirteen weeks, reaching a new multi-month low.</p>
<p>The reserves had been declining since they reached an all-time high of USD 704.89 billion in September. They are now approximately 10 percent lower than their peak.</p>
<p>The reserves have been falling, most likely as a result of <a href="https://mid-day.com/business/real-estate/article/rupee-closes-nearly-flat-gains-1-paisa-against-us-dollar-amidst-month-end-demand-23421132" target="_blank" rel="none noopener">RBI intervention aimed at forcefully preventing the rupee from depreciating sharply</a>, ANI reported.</p>
<p>As per recent RBI data, India's foreign currency assets (FCA), which make up the majority of FX reserves, were worth USD 551.921 billion.</p>
<p><a href="https://www.mid-day.com/mumbai/mumbai-news/article/fir-filed-after-firm-fails-to-return-gold-worth-rs-15-crore-23452655" target="_blank" rel="none noopener">Gold reserves</a> currently total USD 66.268 billion, according to RBI data, ANI cited.</p>
<p>According to estimates, India's foreign exchange reserves are sufficient to fund around a year's worth of projected imports.</p>
<p>In 2023, India gained around USD 58 billion to its foreign exchange reserves, compared to a cumulative decline of USD 71 billion in 2022, ANI reported.</p>
<p>In 2024, the reserves increased by a bit more than USD 20 billion. Without the recent fall, the reserves would have been far larger.</p>
<p>Foreign exchange reserves (FX reserves) are assets kept by a country's central bank or monetary authority, principally in reserve currencies such as the US dollar, with smaller amounts in the Euro, Japanese Yen, and Pound Sterling.</p>
<p>The RBI closely monitors foreign exchange markets, acting only to maintain orderly market conditions and reduce excessive volatility in the rupee exchange rate, without setting a specific target level or range, ANI reported.</p>
<p>To prevent the rupee from depreciating sharply, the RBI frequently intervenes by managing liquidity, including selling dollars.</p>
<p>A decade ago, the Indian rupee was one of the most volatile currencies in Asia. Since then, it has become one of the most stable currencies. The RBI has carefully purchased <a href="https://www.mid-day.com/business/stock-market/article/rupee-drops-11-paise-to-8575-against-us-dollar-in-early-trade-23457282" target="_blank" rel="none noopener">dollars</a> when the rupee is strong and sold them when it falls, increasing the attraction of Indian assets to investors, ANI reported.</p>
<p><br />(With ANI inputs)</p><p>
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According to estimates, India`s foreign exchange reserves are sufficient to fund around a year`s worth of projected imports

India`s forex reserves continues to decline, kitty now stands 10 percent below peak

Rupee falls 14p to 86.59 against dollar

The reserves have been falling, most likely as a result of RBI intervention aimed at forcefully preventing the rupee from depreciating sharply

India's forex reserves steadily declines, kitty now stands 10 percent below peak

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Home / Business / Business News / Article / India's forex reserves steadily declines, kitty now stands 10 percent below peak