Foreign exchange reserves of India hit all-time high

Mumbai: Foreign exchange reserves of India hit all-time high in the week ended May 31. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. Forex reserves had surged $ 4.837 billion to a new all-time high of $ 651.51 billion.  In the previous reporting week, the overall reserves had dropped $2.027 billion to $646.673 billion. The previous high for the kitty was $648.87 billion on May 10.

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.

According to the weekly statistical supplement by RBI, foreign currency assets increased by $ 5.065.51 billion to $ 572.564 billion.Gold reserves decreased $ 212 million to $ 56.501 billion during the week.  The Special Drawing Rights (SDRs) were down $ 17 million to $18.118 billion. India’s reserve position with the IMF was up $1 million to $4.326 billion in the reporting week.