India’s forex reserves fall to 1.5 billion as on May 30

Reserve Bank of India (RBI) Governor Sanjay Malhotra makes a statement on RBI Monetary Policy during the 54th Monetary Policy Committee (MPC) held from 7 to 9 April 2025, in Mumbai on Wednesday
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ANI

India’s foreign exchange reserves stood at $691.5 billion as of May 30, Reserve Bank of India Governor Sanjay Malhotra said on Friday, down $1.2 billion from the previous week and coming off near-eight month highs.

The country’s FX reserves are now about $13.4 billion below their all-time high hit in September 2024.

“These (reserves) are sufficient to fund more than 11 months of goods imports and about 96% of external debt outstanding,” Malhotra said in a statement while announcing the monetary policy decision.

Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in the reserves.

For the week ended May 30, the rupee notched a weekly drop amid uncertainty around US tariffs. The currency had risen to a six-month high in May but shed its gains through the month.

The rupee was little changed at 85.8050 per US dollar on Friday, after the RBI cut its key repo rate by a larger-than-expected 50 basis points, a third consecutive reduction, and slashed the reserve ratio for banks.

Foreign exchange reserves include India’s reserve tranche position in the International Monetary Fund.