Mumbai, Mar 20 (PTI) India's forex reserves dropped USD 7.052 billion to USD 709.759 billion during the week ended March 13, the RBI said on Friday.

In the previous reporting week, the overall reserves had dropped USD 11.683 billion to USD 716.81 billion. The kitty jumped USD 4.885 billion to an all-time high of USD 728.494 billion during the week ended February 27.

For the week ended March 13, foreign currency assets, a major component of the reserves, fell USD 7.678 billion to USD 555.568 billion, the data released by the central bank showed.

Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.

Value of gold reserves increased USD 664 million to USD 130.681 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down USD 23 million to USD 18.697 billion, the apex bank said.

India's reserve position with the IMF was also down by USD 15 million to USD 4.814 billion in the reporting week, according to the apex bank's data. PTI MSU AA TRB

Foreign exchange reserves decline indicates central bank reserve composition shifts and affects external liquidity management policy. The central bank reported a weekly decline in overall foreign exchange reserves driven mainly by a fall in foreign currency assets, alongside an increase in gold holdings and minor decreases in Special Drawing Rights and the reserve position with the international monetary institution, changes which alter reserve composition and dollar-denominated valuation.