Mumbai: India’s foreign exchange (forex) reserves touched new life-time high in the week ended on September 13. The Weekly Statistical Supplement released by the Reserve Bank of India (RBI) revealed this. This is for fifth week in a row that the forex reserves is gaining.
India’s forex reserves jumped $223 million to a fresh all-time high of $689.458 billion for the week ended September 13. The forex kitty had jumped by $5.248 billion to a record $689.235 billion for the previous reporting week. In nearly a month between August 9 and September 13, India’s foreign exchange rose by 2.88 per cent from $670.119 billion to $689.458.
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.
For the week ended September 13, foreign currency assets, decreased by $555 million to $603.629 billion. Gold reserves increased by $899 million to $62.887 billion during the week.The special drawing rights (SDRs) were down by $53 million to $18.419 billion. India’s reserve position with the IMF slipped by $108 million to $4.523 billion in the reporting week.
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