India’s foreign exchange reserves have dropped for nine weeks in a row, reaching $532.66 billion. The week ending September 9 saw a $2.2 billion decline in foreign exchange reserves, down to $550.8 billion. India’s foreign exchange reserves are at their lowest point since July 24, 2020. Gold reserves have also decreased, but not as dramatically as foreign currency assets (FCA), which account for the majority of the reduction. According to RBI Governor Shaktikanta Das, value changes brought on by the strengthening of the dollar and higher US bond yields are another factor contributing to the reduction in reserves.
Since April, when the impacts of the war in Ukraine started to affect the Indian economy, foreign exchange reserves have been rapidly declining.
