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India Forex Reserves Fall $13 Billion for Fourth Straight Week
India keeps foreign money in reserve, like savings for the country.
Those reserves fell by almost $13 billion in the week ending Oct.
2.
It was the fourth week in a row that they went down.
They now total $734.6 billion.
Market participants said the drop partly reflected the central bank selling dollars and changes in the value of currencies and gold.
The rupee has also weakened against the dollar since September began.
The Reserve Bank of India says the reserves could pay for about 11 months of imports.
Its governor also said they equal 94.4% of India’s external debt.
India’s foreign exchange reserves fell $12.95 billion to $734.6 billion in the week ended Oct. 2, marking a fourth consecutive weekly decline.
Reserves are down $51.1 billion from their record high of $785.7 billion in the week ended Sept. 4.
Foreign currency assets fell $10.7 billion to $604.7 billion, while gold reserves declined $2.3 billion to $106.4 billion.
Market participants attributed the decline to RBI dollar sales and valuation changes; market estimates put September net dollar sales at about $30 billion.
RBI Governor Sanjay Malhotra said reserves cover approximately 11 months of imports and equal 94.4% of India’s external debt.
- Who
- India’s foreign exchange reserves and the Reserve Bank of India (RBI).
- What
- Reserves fell $12.95 billion to $734.6 billion, their fourth consecutive weekly decline.
- Where
- India.
- When
- In the week ended Oct. 2; the year is not specified in the article.
- Why
- Market participants attributed the decline to RBI dollar sales and valuation changes affecting foreign currency and gold holdings.
Key facts
- Reserves
- $734.6 billion after a $12.95 billion weekly fall
- Consecutive declines
- Four weekly declines
- Record high
- $785.7 billion in the week ended Sept. 4
- Foreign currency assets
- $604.7 billion, down $10.7 billion for the week
- Gold reserves
- $106.4 billion, down $2.3 billion for the week
- September net dollar sales
- Approximately $30 billion, according to market estimates
- Reserve cover
- Approximately 11 months of imports and 94.4% of India’s external debt, according to the RBI governor
Sources
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