Mumbai: India’s foreign exchange (forex) reserves snapped a two-week gaining streak. Foreign exchange reserves of India drop by $5.27 billion to reach $617.23 billion for the week ended on February 9. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. This is the steepest fall in a month, after having risen by a total of $6.36 billion in the prior two weeks. In the previous reporting week, the forex reserves rose by $5.736 billion to $622.469 billion.
Forex reserves, or foreign exchange reserves (FX reserves), are assets that are held by a nation’s central bank or monetary authority. It is generally held in reserve currencies, usually the US Dollar and, to a lesser degree, the Euro, Japanese Yen, and Pound Sterling.
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The foreign exchange reserves of the country comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the country’s reserve position with the International Monetary Fund (IMF). FCA is the largest component of the forex reserves. It includes the effect of appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves.
The foreign currency assets increased by $4.8 billion to $546.52 billion. Gold reserves were down $350 million to $47.739 billion during the week. The Special Drawing Rights were down $55 million to $18.135 billion. According to the RBI, in this fiscal, the reserves have increased by $50.2 billion.
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