India's forex reserves lowest since July 2020

India's forex reserves have hit its lowest since July 2020, to USD 524.52 billion till October 21, according to the Reserve Bank of India (RBI).

The forex reserves that have been on decline for months had dropped to USD 528.37 billion in the previous week, NDTV reports.

India’s forex reserves had hit an all-time high of USD 645 billion in October 2021.

The forex reserves have been down as India’s central bank uses the funds to safeguard the rupee against pressures mounted mostly by global situations, the NDTV report adds.

According to the RBI's Weekly Statistical Supplement issued on Friday, Foreign Currency Assets (FCA), a significant component of total reserves, fell by USD 3.593 billion to USD 465.075 billion for the week ending October 21.

FCA, expressed in dollar terms, comprises the effect of appreciation or depreciation of non-US units such as euro, pound, and yen held in foreign exchange reserves.

Meanwhile, the gold reserves saw a fall of USD 247 million in value to USD 37.206 billion, it said.

The top bank reported an increase of USD 7 million in Special Drawing Rights (SDRs) to USD 17.44 billion.

The country's reserve position with the IMF was down by USD 14 million to USD 4.799 billion in the reporting week, the central bank data showed.