Mumbai: India’s foreign exchange (forex) reserves touched an all-time high in the week ended on March 29. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. This is sixth week in a row that the forex reserves are surging.
India’s forex reserves increased $2.951 billion to $645.583 billion for the week ended March 29. The forex kitty had increased $140 million to $642.631 billion in the previous reporting week. In the previous five weeks, the forex reserves surged by $26.5 billion. The country’s forex kitty had in October 2021 reached an all-time high of $642.453 billion.
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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.
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 (FCA) increased $2.354 billion to $570.618 billion in the reporting week. Gold reserves increased $673 million to $52.16 billion during the week. The Special Drawing Rights (SDRs) were down $73 million to $18.145 billion. India’s reserve tranche position in the International Monetary Fund (IMF) was also down $2 million to $4.66 billion in the reporting week.
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