This record was set 13 months ago, now Rs 1.35 lakh crore has disappeared in 3 weeks

Nearly 13 months ago, the country's foreign exchange reserves set a lifetime high. Since then, there has been a wait for this record to be broken. Several times it seemed certain this record would be broken, but then a significant decline occurred. 

Now, for the past three weeks, foreign exchange reserves have been steadily declining. Over ₹1.35 lakh crore has disappeared from the reserves in these three weeks. 

Data shows a decline in both foreign currency assets and gold reserves. If this continues, the country's gold reserves will once again fall below $100 billion. Let us also tell you what kind of data has been released by the RBI.

Decline in foreign exchange reserves

According to information provided by the Reserve Bank of India, the country's foreign exchange reserves declined by $2.69 billion to $687.03 billion in the week ended November 7th. 

Foreign exchange reserves have been declining for the past few weeks. In the previous week, reserves had fallen by $5.62 billion to $689.73 billion. This is the third consecutive week in which foreign exchange reserves have declined.

Under this, the country's forex reserves have been reduced by Rs 1.35 lakh crore, or $15.25 billion. Whereas in the week ending September 27, the country's foreign exchange reserves reached $704.89 billion, a record. 

From the week ending September 12 to the week ending October 17, there were three occasions when it seemed that the country's foreign exchange reserves would surpass the lifetime high, but this did not happen. But then the foreign exchange reserves started declining.

What are the reasons for the reduction of forex reserves?

1. According to data released on Friday, foreign currency assets, a major component of foreign exchange reserves, declined by $2.45 billion to $562.14 billion in the week ended November 7.
2. RBI said that during the week the value of gold reserves declined by $195 million to $101.53 billion.
3. On the other hand, Special Drawing Rights (SDR) also declined by $51 million to $18.59 billion.
4. According to the data, India's reserve position in the International Monetary Fund (IMF) remained unchanged at $4.77 billion in the week under review.

Expenses incurred in handling the money

According to experts, the RBI has used its forex reserves to stabilize the rupee. Experts believe that the rupee has been declining for the past few days, and the RBI has intervened to keep it on track.

Meanwhile, due to increased dollar demand from foreign currency traders, the RBI has used its forex reserves to stem the rupee's decline. Furthermore, India is now reducing dollar purchases to reduce its dependence on the dollar and has increased its focus on gold.