India’s forex reserves rise by $1.727 bn to $573.727 bn

India’s foreign exchange reserves increased by $1.727 billion to $573.727 billion in the week ended January 20, the Reserve Bank of India said on Friday.

India’s forex reserves stood at $561.583 billion as on January 13, 2023.

The Foreign Currency Assets stood at $503.65 billion. FCA is a major component of the overall reserves. Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

At the start of 2022, the overall forex reserves were at $633.61 billion and dropped to a two-year low in October. Much of the decline can be attributed to RBI’s intervention and a rise in the cost of imported goods. It is still down sharply from a peak of over $642 billion touched in September last year.

“Indian forex reserves have come down probably due to some sales by the central bank. But the same can be replenished in case dollar supplies improve in 2023,” Bhaskar Panda, HDFC Bank’s executive vice president of overseas treasury told news agency Archyde.com.