In brief
India’s foreign exchange reserves dropped $2.691 billion to $717.056 billion during the week ending Oct. 30, marking the eighth straight week of decline. The losses come after a $1.269 billion fall the previous week and a $68.65 billion drop over the past two months. The Reserve Bank of India (RBI) noted decreases in foreign currency assets, gold and special drawing rights, while its IMF position slightly increased.
India’s foreign exchange reserves fell by $2.691 billion to $717.056 billion during the week ending Oct. 30, according to a bulletin from the Reserve Bank of India released on Friday.
The decline is the eighth consecutive week of falling reserves, after the previous week’s drop of $1.269 billion and a total decline of $68.65 billion over the last two months.
The RBI data showed that foreign currency assets fell $2.088 billion to $591.118 billion, gold reserves slipped $559 million to $102.591 billion, and special drawing rights declined $47 million to $18.558 billion, while the country’s position at the International Monetary Fund rose $3 million to $4.79 billion.
Lower reserves can reduce India’s ability to shield its currency from volatility, pay for imported goods, and maintain investor confidence in a stable economy.
Economists warn that a continuous decline could lead to higher borrowing costs or pressure on the rupee if the central bank needs to intervene more aggressively.
The RBI will likely adjust its policy mix to stabilize reserves and balance the country’s foreign‑exchange position.
