Mumbai: India’s foreign exchange (forex) reserves touched an all-time high in the week ended on April 5. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. This is seventh week in a row that the forex reserves are surging.
India’s foreign exchange reserves increased $2.98 billion to $648.562 billion for the week ended April 5. In the previous reporting week, the forex kitty had increased by $2.951 billion to $645.583 billion, which was an all-time high.
The forex kitty had increased $140 million to $642.631 billion in the week ended on March 22.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.
For the week ended April 5, the foreign currency assets (FCA) increased by $549 million to $571.166 billion. Gold reserves increased by $2.398 billion to $54.558 billion during the week. The Special Drawing Rights (SDRs) were up by $24 million to $18.17 billion. India’s reserve position in the International Monetary Fund (IMF) was also up by $9 million to $4.669 billion in the reporting week.
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