The total reserves had increased by $6.295 billion to $696.988 billion during the week that concluded on May 8.
The reserves had reached a peak of $728.494 billion in the week ending February 27, prior to the onset of the Middle East conflict, which subsequently caused several weeks of decline due to pressure on the rupee, prompting the RBI to step in with dollar sales in the forex market.
Prime Minister Narendra Modi has made several public appeals since May 11, urging citizens to conserve foreign exchange by reducing foreign travel, limiting fuel consumption, and postponing gold purchases for a year.
For the week ending May 15, foreign currency assets, a key component of the reserves, declined by $6.483 billion to $545.904 billion, as reported by the central bank.
In dollar terms, these foreign currency assets reflect the impacts of appreciation or depreciation of non-US currencies, like the euro, pound, and yen, held in the foreign exchange reserves.
The value of gold reserves also dipped by $1.536 billion to $119.317 billion during the week, according to the RBI.
The special drawing rights (SDRs) decreased by $49 million, reaching $18.824 billion, the apex bank reported.
India’s reserve position with the IMF also saw a decline of $25 million, totaling $4.85 billion at the end of the reporting week, based on data from the apex bank.
Also Read: Curbs on foreign trips, focus on public transport: Gujarat govt issues measures to save fuel, forex
(Edited by : Navneet Singh)
