India’s foreign exchange reserves, which are a measure of assets such as foreign currency, foreign marketable securities and gold, went down to mark the end of the week on January 6.
After rising in a week prior to that after sliding for a fortnight, the Forex reserves plunged by 1.268 billion. The big decline came for foreign currency assets, which went down by 1.747 billion.
At the same time, gold reserves were up by $461 million, while India’s import of the yellow metal went down by 79 per cent.
Late last year, RBI had also emerged as the biggest gold buyer, as central banks turned to the precious metal as a hedge against inflation.