New Delhi: India’s foreign exchange (forex) reserves touch all-time high in the week ended on July 5. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
As per RBI data, the forex reserves surged by $5.158 billion to a new high of $657.155 billion. This surge comes after two consecutive weeks of declines, where reserves dropped by $1.713 billion to $651.997 billion as of June 28. The previous peak was $655.817 billion recorded on June 7 this year.
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 rose by $4.228 billion to $577.11 billion during the week. Gold reserves also saw a substantial rise, increasing by $904 million to $57.432 billion. Special drawing rights (SDRs) went up by $21 million to $18.036 billion.India’s reserve position with the International Monetary Fund (IMF) increased by $4 million to $4.578 billion.
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