Forex Reserves Current Affairs

India’s forex reserves at record-high of $386.53 billion

According to RBI, India’s foreign exchange (Forex) reserves have increased by $4.007 billion to touch a record high of $386.539 billion in the week that ended 30th June 2017.

The components of India’s Foreign Exchange Reserves include Foreign currency assets (FCAs), Special Drawing Rights (SDRs), Gold and RBI’s Reserve position with International Monetary Fund (IMF). 

Key Facts

The increase forex in the reporting week was due to increase FCAs. It rose by $3.724 billion to $362.388 billion. Gold reserves also increased by $252.8 million to $20.348 billion. India’s special drawing rights (SDRs) with the International Monetary Fund (IMF) also rose by $11.8 million to $1.479 billion. The RBI’s reserve position with IMF also increased by $18.9 million to $2.322 billion.

FCAs forms major part of the overall reserves. It consists 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 also include with them the effects of appreciation or depreciation of non-US currencies like the euro, pound, and yen and is expressed in terms of dollars.

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India’s Forex Reserves reach Life Time High of $381.167 billion

According to RBI, India’s foreign exchange (Forex) reserves have increased by $2.404 billion to touch a lifetime high of $381.167 billion in the week that ended on June 2. The increase was due to increase in foreign currency assets (FCAs).

Components

The components of India’s Foreign Exchange Reserves include: Foreign currency assets (FCAs), Gold, Special Drawing Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF).

Out of all the components, FCAs constitute the largest component of the Forex Reserves.

FCA rose by $2.748 billion to $357.290 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 declined by $343.2 million to $20.095 billion in the reporting week.

SDRs’ value decreased marginally by $0.2 million to $1.472 billion.

RBI’s reserve position with the IMF declined by $0.4 million to $2.309 billion.

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