India’s foreign exchange reserves rise to $641.59 billion

Mumbai: The foreign exchange reserves of India increased by $3.668 billion to $641.59 billion for the week ended May 3. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.

The forex reserves dropped $2.412 billion to $637.922 billion for the previous week ended April 26. The forex reserves decreased $2.282 billion to $640.334 billion during the week ended April 19. The reserves had dropped $5.401 billion to $643.162 billion in the previous reporting week. The forex reserves surged for seventh week in a row previously. In week ended on April 5, forex reserves touched an all-time high of $648.562 billion.

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 May 3, the foreign currency assets increased by $4.459 billion to $564.161 billion. Gold reserves decreased by $653 million to $54.88 billion during the week. The Special Drawing Rights (SDRs) were up $2 million to $18.051 billion. India’s reserve position with the IMF was down by $140 million to $4.499 billion in the reporting week.