Foreign exchange reserves: The country’s foreign exchange reserves increased by $394 million to $631.92 billion in the week ended March 4. The Reserve Bank of India (RBI) gave this information and earlier in the week ended February 25, foreign exchange reserves had decreased by $1.425 billion to $631.527 billion.
Foreign exchange reserves were at a record high in September
Earlier, in the week ending September 3, 2021, foreign exchange reserves had reached an all-time high of $642.453 billion. According to the RBI’s weekly data released on Friday, the increase in foreign exchange reserves is due to the increase in foreign currency holdings (FCA), which constitute a significant portion of total reserves. According to the data, in the week ended February 18, FCA grew by $634 million to $565.466 billion.
Decrease in gold reserve or gold reserves
Currency assets held in dollar-denominated foreign exchange reserves include the effects of appreciation or depreciation of non-US currencies such as the euro, pound and yen. During the same week, gold reserves, i.e. the country’s gold reserve, decreased by $147 million to $42.32 billion.
There was also a decline in SDRs deposited with the IMF
During the reference week, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) decreased by $59 million to $18.981 billion. The country’s foreign exchange reserves kept at the IMF decreased by $34 million to $5.153 billion.
The country’s foreign exchange reserves are continuously increasing
The country’s foreign exchange reserves are continuously increasing and although the effect of the fall in the stock market this week is being felt, the growth is still satisfactory. Investment from foreign investors is increasing in India and its effect is being felt on foreign exchange reserves.