Image Source : FILE India’s forex reserves.
India’s forex reserves dropped USD 1.31 billion to USD 656.58 billion for the week ended November 22, the Reserve Bank of India (RBI) said. The kitty had dropped a record USD 17.761 billion to USD 657.89 billion in the previous reporting week ending November 15.
The reserves, which had hit an all-time high of USD 704.885 billion in end-September, have been declining for multiple weeks, at a time when the rupee has also been under pressure. For the week ended November 22, foreign currency assets — a major component of the reserves — decreased USD 3.043 billion to USD 566.791 billion, the data, which was released on Friday, showed.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves. Gold reserves increased USD 1.828 billion to USD 67.573 billion during the week, the RBI said.
The special drawing rights (SDRs) were down USD 79 million to USD 17.985 billion, the apex bank said. India’s reserve position with the IMF was also down USD 15 million to USD 4.232 billion in the reporting week, the RBI data showed.
India’s GDP growth slows to 2-year low
Meanwhile, India’s economic growth slowed to near two-year low of 5.4 per cent in the July-September quarter of this fiscal due to poor performance of manufacturing and mining sectors, but the country continued to remain the fastest-growing large economy, data showed on Friday. The gross domestic product (GDP) had expanded by 8.1 per cent in the July-September quarter of 2023-24 fiscal.
The previous low level of GDP growth at 4.3 per cent was recorded in the third quarter (October-December 2022) of the financial year 2022-23. However, India remained the fastest-growing major economy as China’s GDP growth in the July-September quarter this year was at 4.6 per cent.
(With PTI inputs)
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