In the previous week ended March 26, the reserves had decreased by $2.986 billion to $579.285 billion. The forex kitty had touched a record high of $590.185 billion in the week ended January 29, 2021.
In the reporting week ended April 2, 2021, the decline in the reserves was mainly on account of a fall in foreign currency assets (FCA), a major component of the overall reserves.
FCA declined by $1.515 billion to $536.438 billion, weekly data by the Reserve Bank of India (RBI) 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.
The gold reserves dropped by $884 million to $34.023 billion in the reporting week, as per the central bank data.
The country’s reserve position with the IMF declined by $12 million to $4.923 billion in the reporting week, the data showed.