- July 25, 2021
- Posted by: admin1
- Category: DPN Topics
Context: Maintaining a winning streak, the forex reserves swelled by $835 million to reach another record high of $612.73 billion in the week ended July 16, 2021, data from the Reserve Bank of India (RBI) showed.
- The FCA a major component of the overall reserves — rose by $463 million to $568.748 billion in the reporting week.
- Foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
- Gold reserves were up by $377 million to $37.333 billion in the reporting week, the data showed.
- The special drawing rights (SDRs) with the International Monetary Fund (IMF) were up by $1 million at $1.548 billion.
- The country’s reserve position with the IMF declined by $7 million to $5.1 billion in the reporting week, the data showed.
- The rising forex reserves could bring some comfort to the government as well as the RBI in managing the external and internal financial issues at a time when the economy is facing
- It is a big cushion in the event of any crisis on the economic front and enough to cover India’s import bill for a year.
- An increase in the forex kitty could also help strengthen the rupee against the US dollar