Forex reserves decreased by $4.11 bn to $640.27 bn as of Dec 27: RBI

India’s foreign exchange reserves have decreased by $4.11 billion, reaching $640.27 billion as of December 27, 2024. The decline in reserves is attributed to factors such as a drop in foreign portfolio investments and ongoing global economic challenges. However, the current level of reserves is still considered strong, providing a buffer against external shocks. The Reserve Bank of India continues to manage the country’s forex reserves strategically, ensuring adequate liquidity and stability in the financial system. The drop in reserves is expected to be temporary, with analysts projecting a recovery in the coming months.