India’s foreign exchange reserves increased by USD 2.039 billion

As per RBI data, India’s foreign exchange reserves increased by USD 2.039 billion in the first week of October 2021.

Highlights

• Foreign exchange now stands at USD 639.516 billion.
• In the last week of September, reserves had dropped by USD 1.169 billion, accounting for a reserve of USD 637.477 billion.
• It had increased by USD 8.895 billion to a life time high, accounting for USD 642.453 billion during July end and September first week.
• India’s reserve position with the IMF decreased by USD 3 million, accounting for USD 5.225 billion in the reporting week.

Foreign Currency Assets (FCAs)

During the reporting week. Foreign reserves rose account of an increase in the Foreign Currency Assets (FCAs). FCA increased by USD 1.55 billion, accounting for USD 577.001 billion the week RBI reported.

What is FCA?

FCA is expressed in dollar terms. It comprises of the effect of appreciation or depreciation of non-US units such as euro, pound and yen held in the foreign exchange reserves.

Gold reserves

In the reporting week, gold reserves increased by USD 464 million to USD reach at 38.022 billion.

Special Drawing Rights (SDRs)

SDR with the International Monetary Fund (IMF) increased by USD 28 million, accounting for USD 19.268 billion.

What are foreign exchange reserves?

Assets held on reserve by central bank in foreign currencies are called as foreign exchange reserves. These reserves are used to influence monetary policy and back liabilities. It includes any foreign money held by a central bank, for instance, U.S. Federal Reserve Bank.

Month: Current Affairs - October, 2021