In brief
RBI data shows India’s forex reserves fell by $1.269 billion to $719.748 billion in the week ended Oct 23, marking the seventh consecutive weekly decline. While “Foreign Currency Assets” increased by $1.358 billion, gold reserves slipped by $2.65 billion, reflecting a mixed shift in the reserve composition.
India’s foreign‑exchange reserves slid by $1.269 billion, falling to $719.748 billion in the week ended Oct 23, RBI data released Friday shows. The drop, the seventh straight week of decline, brings the reserve level below the $720 billion threshold that has been a benchmark for the country’s international liquidity.
“Foreign Currency Assets”, a core component of the reserves, rose by $1.358 billion during the same period, reaching $593.205 billion. The increase comes as the RBI continues to diversify holdings, adding to confidence that the currency base remains robust against global shocks.
Conversely, gold reserves—a significant asset class for the RBI—dropped by $2.65 billion to $103.15 billion. The loss in gold value underscores a strategic shift away from precious metals toward more liquid foreign assets.
Official analysis points to the RBI’s asset‑allocation strategy as the main driver of the mixed movements in reserve composition. Analysts say a sustained decline over multiple weeks could affect market perceptions of India’s foreign‑exchange resilience, though the overall asset balance remains solid.
