Forex Reserves Touch Life Time High of $372.73 billion
According to the Reserve Bank of India’s weekly statistical supplement, India’s foreign exchange (Forex) reserves have increased by $1.594 billion to touch a lifetime high of $372.73 billion in the week that ended on April 28. The increase was due to increase in foreign currency assets (FCAs), The reserves had increased by $1.250 billion to $371.14 billion in the previous week.
Components
The components of India’s Foreign Exchange Reserves include:
- Foreign currency assets (FCAs)
- Gold
- Special Drawing Rights (SDRs)
- RBI’s Reserve position with International Monetary Fund (IMF)
FCAs constitute the largest component of the Forex Reserves. FCA surged $1.569 billion to $349.055 billion in the reporting week. FCAs consist of US dollar and other major non-US global currencies. It also comprises of investments in US Treasury bonds, bonds of other selected governments, deposits with foreign central and commercial banks. FCAs include with them the effects of appreciation or depreciation of non-US currencies like the euro, pound, and the yen and is expressed in terms of dollars.
The gold reserves stand at $19.869 billion. SDRs’ value has increased $8.5 million to reach $1.460 billion. RBI’s reserve position with the IMF also increased by $15.8 million to reach $2.347 billion.
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Month: Current Affairs - May, 2017