New Delhi: India’s foreign exchange (forex) reserves gained in the week ended on August 16. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
As per RBI data, India’s forex reserves rose by $4.5 billion and stood at $674.66 billion as of August 16. The forex reserves had fallen by $4.8 billion in the previous week, the biggest decline in four months. The reserves had reached a record high of $674.92 billion in the week to August 2.
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.
In the week ended August 16, foreign currency assets, increased by $3.609 billion to $591.569 billion. Gold reserves increased by $ 865 million to $60.104 billion during the week. The Special Drawing Rights (SDRs) were up by $60 million to $18.341 billion. India’s reserve position with the IMF was up by $12 million to $4.65 billion during the week.
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