Foreign exchange reserves slide $3 bn amid Brexit turmoil

Mumbai : The country’s foreign exchange reserves declined by USD 3.03 billion to USD 360.79 billion for the week ended June 24 amid volatility in the currency market after Brexit referendum in the UK. The forex kitty, used to fight volatility in the currency market, had touched a life-time high of USD 363.826 billion at the end of the previous reporting week.  The USD 3.03 billion dip was due to a USD 2.99 billion decline in the core foreign currency assets (FCAs), the largest part of the reserve, to USD 336.58 billion, RBI data released today said. FCAs, expressed in dollar terms, include the effect of appreciation/depreciation of non-US currencies such as the euro, pound and yen held in the reserves.  The Reserve Bank had to intervene by selling dollars in wake of the Brexit result last Friday, which triggered a big episode of volatility in the international markets. In the intra-day trade on last Friday, the rupee had plunged by as much as 93 paise against the dollar breaching the 68 mark, but managed to recover to close the trade with a loss of 71 paise to 67.96. The RBI data said gold reserves remained unchanged at USD 20.33 billion. The country’s special drawing rights with the International Monetary Fund dipped by USD 13.4 million to USD 1.489 billion and the reserve position decreased by USD 21.6 million to USD 2.398 billion, the central bank said.                 -PTI