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).
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.
Categories: Banking Current Affairs 2017