Mumbai: India’s foreign exchange (forex) reserves touched new life-time high in the week ended on September 6. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. This is for fourth week in a row that the forex reserves is gaining.
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.
India’s foreign exchange reserves rose $5.248 billion to $689.235 billion as of September 6. It was at $683.987 billion in the previous week. The foreign currency assets increased $5.107 billion to $604.144 billion as of September 6. Gold reserves also showed a $129 million increase to $61.988 billion. The Special Drawing Rights (SDRs)showed an increase of $4 million to $18.472 billion as of September 6. The Reserve position in the International Monetary Fund (IMF) rose $9 million to $4.631 billion.
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