RBI reserves this week: Forex reserves dip by $3.06 billion to $696.67 billion, SDRs and IMF position also lower

India’s foreign exchange reserves fell by $3.064 billion to $696.672 billion in the week ended July 11, according to the latest data released by the Reserve Bank of India on Friday. This marks a second consecutive weekly decline, following a $3.049 billion drop in the previous week when reserves stood at $699.736 billion, PTI reported. The current level is still just below the all-time high of $704.885 billion recorded in end-September 2024.The drop during the reporting week was primarily due to a $2.477 billion fall in foreign currency assets, which make up the largest component of the reserves. These assets stood at $588.81 billion, down from $591.287 billion a week earlier.Expressed in dollar terms, foreign currency assets include the impact of movement in non-US currencies such as the euro, pound sterling and Japanese yen.Gold reserves also saw a significant drop, falling by $498 million to $84.348 billion.The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) declined by $66 million to $18.802 billion during the week.India’s reserve position with the IMF was also lower, down by $24 million to $4.711 billion.Foreign exchange reserves are widely considered a vital buffer against external shocks such as volatile crude prices, sharp currency movements and global financial instability. They serve as an important indicator of a country’s ability to finance imports and intervene in foreign exchange markets when required. The Reserve Bank of India (RBI) plays a central role in managing these reserves to ensure macroeconomic stability and maintain confidence in India’s external sector. To provide transparency and regular updates, the RBI releases its weekly statistical supplement every Friday, offering a comprehensive snapshot of the country’s forex position and its preparedness to deal with global economic turbulence.