New Delhi: India’s foreign exchange (forex) reserves gained in the week ended on August 23. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this.
As per RBI data, India’s forex reserves surged $7.023 billion to touch a new high of $681.688 billion in the week ended August 23. The overall reserves had jumped $4.546 billion to $674.664 billion in the previous reporting week. The forex reserves had fallen by $4.8 billion in the week ended on August 9. This was 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.
During the week ended August 23, gold reserves increased $893 million to $60.997 billion. For the week ended August 23, foreign currency assets, increased by $5.983 billion to $597.552 billion. The special drawing rights (SDRs) increased $118 million to $18.459 billion. India’s reserve position with the IMF was up by $30 million to $4.68 billion in the reporting week.
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