New Delhi. India's foreign exchange reserves have declined for the second consecutive week. According to the report based on Reserve Bank data, the reserves decreased by $ 18.343 billion to $ 747.557 billion in the week ending September 25. Last week also there was a decrease of 14.881 billion dollars.
Foreign currency assets accounted for the largest share of the latest weekly decline. These assets decreased by $ 15.57 billion to $ 615.411 billion. The dollar value of gold reserves also declined by $2.591 billion to $108.701 billion.
Apart from this, there was a decrease of $ 97 million in Special Drawing Rights (SDR). India's reserve position in the International Monetary Fund also decreased by $86 million. In this way, all four major components of foreign exchange reserves registered a decline during the week.
Changes in foreign exchange reserves cannot be explained by dollar withdrawals alone. Fluctuations in the value of currencies like the Euro, Pound and Yen also affect the figures released in dollars. This effect has been noted in available reports.
After two consecutive weeks of decline, the upcoming data will be closely watched. It will be clear from them whether the process of reduction in reserves continues or it stabilizes.