India's forex reserves fall to $625.87 billion, down by 8.7 billion as of January 10

India's foreign exchange reserves fell to $625.87 billion, down by $8.7 billion as of the week ending January 10, 2025, the Reserve Bank of India data showed on Friday.

The country's forex reserves had dropped by $5.6 billion for the week ending January 3, 2025 and had settled at $634.59 billion.

The Weekly Statistical Supplement released by the RBI showed that the primary contributor to this decline was the drop in Foreign Currency Assets (FCAs), which fell by fell by $9.469 billion to $536.011 billion.


Meanwhile, gold reserves saw an increase of USD 792 million, rising to USD 67.883 billion during the same week, the Reserve Bank of India (RBI) reported.

Special Drawing Rights (SDRs) declined by USD 33 million to USD 17.781 billion, while India's reserve position with the International Monetary Fund (IMF) fell by USD 4 million to USD 4.195 billion, the RBI data showed.

India's forex kitty

The RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.