Forex reserves shrink $ 1.4 bn to $ 632 bn

India’s forex reserves declined by $1.4 billion to $631.5 billion for the week ended in February 25 due to a dip in currency assets, according to RBI data released. The overall reserves had increased by $2.8 billion to USD 633 billion in the previous reporting week.

Foreign currency assets (FCA) declined by $2.3 billion to $564.8 billion during the reporting week. 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 value of the gold reserves continued its northward journey and increased by $958 million to $42.5 billion.