Forex reserves dip to $700.2 billion: Foreign currency assets decline; gold holdings rise

India’s foreign exchange reserves declined by $2.334 billion to $700.236 billion in the week ended September 26, according to data released by the Reserve Bank of India (RBI) on Friday. In the previous week, the reserves had dipped by $396 million to $702.57 billion.The fall was primarily due to a drop in foreign currency assets (FCAs), the largest component of the reserves, which decreased by $4.393 billion to $581.757 billion, PTI reported. The RBI data noted that FCAs are expressed in dollar terms and include the impact of appreciation or depreciation of non-US currencies like the euro, pound, and yen held in India’s reserves.However, gold reserves rose during the week by $2.238 billion to $95.017 billion.Special Drawing Rights (SDRs) at the IMF also edged lower, down $90 million to $18.789 billion. India’s reserve position with the IMF declined by $89 million to $4.673 billion in the same period, the data showed.