International Monetary Fund Current Affairs

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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Christine Lagarde appointed as MD of IMF for a second term

Christine Lagarde (60) from France has been appointed as the Managing Director (MD) of the International Monetary Fund for a second five-year term.

She was sole candidate nominated for the post and was re-nominated by IMF’s Executive Board decision taken by consensus. Her new term will start on 5th July 2016 till 2021.

Ms. Lagarde for first time was appointed MD in 2011 after IMF Board had initiated selection process on merit-based and transparent process. She was first woman to head the top post of IMF since its inception in 1944.

About Christine Lagarde

  • Prior to her appointment at the IMF in 2011, she had served as Minister of Finance and Minister for Foreign Trade of France.
  • She is anti-trust and labour lawyer and had served as partner with the international law firm of Baker & McKenzie.

About International Monetary Fund (IMF)

  • The International Monetary Fund (IMF) is an organization of 188 countries, working to foster global monetary cooperation, facilitate international trade, secure financial stability, promote high employment and sustainable economic growth and reduce poverty around the world.
  • Headquarters: Washington, D.C.
  • Managing Director of IMF: She is the chief of the IMF’s operating staff and is also Chairman of the 24-member Executive Board. She is assisted in carrying out her responsibilities by 4 Deputy MDs and about 2,700 staff from 147 countries.

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