India’s foreign exchange reserves plunged by $573.5 million to close at $319.99 billion in the week through August 1 due to a sharp decline in currency assets, showed the Reserve Bank of India (RBI) via its weekly statistical supplement. This compares to an increase of $2.71 billion to $320.56 billion in the week through July 25, which was attributed to an increase in the value of currency assets.
Foreign currency assets, which form the biggest proportion of the forex reserves, declined by $1.09 billion to $292.69 billion in the week under consideration. The foreign currency assets had surged by $163 million to $291.05 billion in the week through July 25, reported the Times of India.
The foreign currency assets, which are usually denominated in US dollars, incorporate the effect of depreciation or appreciation of non-US currencies that are retained in the reserves such as euro, sterling and the yen.
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India’s reserve position at the International Monetary Fund (IMF) plunged by $5.9 million to $1.70 billion. The valuation of the special drawing rights (SDRs) also tumbled by $15.5 million to $4.42 billion.
Nonetheless, the value of gold reserves surged by $538.9 million to $21.17 billion, after having declined $155.5 million to $20.63 billion in the week through July 25.
Meanwhile, Philippines gross international reserves surged to $80.95 billion in July, data released last week by the nation’s central bank showed. This equates to an increase of $200 million compared with the $80.73 billion dollars at the end of June.
The increase was attributed to income from the country’s global investments, foreign exchange operations as well as the foreign currency deposits with the Bureau of the Treasury. The July GIR is expected to sustain exports and other payments for 11 months. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Yashu Gola at yashu@forexminute.com
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