India's Forex Reserves Experience Significant Drop

India's foreign exchange reserves witnessed a substantial decrease of $9.322 billion, settling at $688.871 billion for the week ending August 1. This marks one of the most notable weekly declines in recent months, as per the latest data released by the Reserve Bank of India (RBI).

Key Factors Behind the Decline

The downturn was primarily driven by a $7.319 billion reduction in foreign currency assets, the largest component of the reserves, which now total $581.607 billion. Additionally, gold reserves saw a significant decrease, falling by $1.706 billion to $83.998 billion.

Other Components Affected

Special Drawing Rights (SDRs) also decreased by $237 million to $18.572 billion, and India's reserve position with the International Monetary Fund (IMF) dropped by $59 million to $4.694 billion.

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