India's forex reserves decline to $616 billion, lowest in two months

India's foreign exchange reserves declined to $616.10 billion as on February 16, data released by the Reserve Bank of India (RBI) on February 23 showed.

At $616.10 billion, the forex reserves were down $1.13 billion from the previous week. However, it follows an even larger decline of $5.24 billion in the week ended February 9, resulting in the latest figure being the lowest in two months.

Also Read: India faces 'problem of plenty' from FX inflows post index inclusion, US rate cuts

The reserves were last lower when they stood at $615.97 billion as on December 15.The break-up of the forex reserves as of February 16 is as follows:

• Foreign currency assets: $545.78 billion, down $740 million week-on-week
• Gold: $47.38 billion, down $362 million week-on-week
• Special Drawing Rights: $18.11 billion, down $28 million week-on-week
• Reserve position in the International Monetary Fund: $4.83 billion, down $1 million week-on-week

Changes to the foreign exchange reserves occur from the sale or purchase of foreign assets as well as the appreciation or depreciation of the currencies they are denominated in. The RBI's stated stance is to only intervene in the market to prevent sharp volatility in the rupee's exchange rate.

Also Read: IMF, India cross swords over fiscal consolidation, forex market intervention