The Crossbill News Desk
India’s external sector indicators showed signs of pressure during March, with the country’s foreign exchange reserves witnessing a sharp weekly decline amid fluctuations in global markets and valuation changes in gold holdings, according to the latest data released by the Reserve Bank of India.
India’s foreign exchange reserves declined by $11.4 billion over the week ending March 20 to $698.35 billion, largely driven by a decrease in its stocks of gold, the RBI’s weekly statistical supplement released on Friday (March 27) showed.
The value of its gold reserves stood at around $117.2 billion on March 20, having declined by some $13.5 billion over the preceding week. India’s foreign currency assets however went up by $2.13 billion to $557.7 billion over the same period.
Special drawing rights, which are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF), went down by $65 million to $18.6 billion, while India’s reserve position in the IMF was worth $4.83 billion, marking an increase of $19 million between March 7 and 20.
In the week that ended on February 27 – a day before the US and Israel launched attacks on Iran – India’s foreign exchange reserves had touched an all-time high $728.49 billion. Since the attacks the rupee has tumbled to a record 94.8125 to the dollar.
Reuters reported on Friday that foreign investors sold an overall $12.14 billion in Indian shares after February 28 in what is the largest monthly outflow ever.
Market analysts note that the recent movement in reserves reflects heightened global uncertainty, capital outflows and currency volatility, factors that continue to shape India’s financial stability outlook amid evolving geopolitical developments.
India’s foreign exchange reserves declined by $11.4 billion over the week ending March 20 to $698.35 billion, largely driven by a decrease in its stocks of gold, the RBI’s weekly statistical supplement released on Friday (March 27) showed.
The value of its gold reserves stood at around $117.2 billion on March 20, having declined by some $13.5 billion over the preceding week. India’s foreign currency assets however went up by $2.13 billion to $557.7 billion over the same period.
Special drawing rights, which are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF), went down by $65 million to $18.6 billion, while India’s reserve position in the IMF was worth $4.83 billion, marking an increase of $19 million between March 7 and 20.
In the week that ended on February 27 – a day before the US and Israel launched attacks on Iran – India’s foreign exchange reserves had touched an all-time high $728.49 billion. Since the attacks the rupee has tumbled to a record 94.8125 to the dollar.
Reuters reported on Friday that foreign investors sold an overall $12.14 billion in Indian shares after February 28 in what is the largest monthly outflow ever.
Market analysts note that the recent movement in reserves reflects heightened global uncertainty, capital outflows and currency volatility, factors that continue to shape India’s financial stability outlook amid evolving geopolitical developments.
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