Due to the falling foreign currency assets and gold reserves, the reserves of RBI slumped by 6.68 billion. The central bank has shared the data; as per the data, the RBI Forex dipped to $500 billion at the end of August, the lowest of the past 22 months, the previous lowest of RBI forex was on October 2020. With the fall of a $5.8 billion foreign exchange asset and gold, the reserve has faced a fall of $704 billion; the reveres were lower by $6.7 billion on the week.

Since the beginning of the financial year, the FX reserve has declined by $43.3 billion and $52.8 billion since the calendar year. Simultaneously in the same period, foreign currency assets have declined steadily by $71.8 billion, at $501 as of August 19.

Reveres had touched their highest at the weekend of September 3, 2021
“Ritika Chabbra also added that forex reserves are likely to remain under pressure in the near term as the US dollar index is back to its mid-July high and oil prices are expected to remain elevated.