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).
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.
Month: Current Affairs - July, 2017