Gold Silver Reports (GSR) – India’s Forex Reserves Up by $879.5 Million to $413 Billion — In the previous week, the reserves had declined by $593.7 million to $412.230 billion. The reserves had touched a record high of $426.028 billion in the week to 13 April, 2018. India’s foreign exchange reserves increased by $879.5 million to $413.109 billion in the week to 8 June, helped by rise in foreign currency assets, the Reserve Bank data showed on Friday.
It had crossed the $400-billion mark for the first time in the week to 8 September, 2017, but has since been fluctuating. In the reporting week, the foreign currency assets, a major component of the overall reserves, rose by $875.4 million to $388.391 billion.
Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as the euro, the pound and the yen held in the reserves.
Gold reserves remained unchanged at $21.189 billion in the reporting week, the data showed.
The special drawing rights with the International Monetary Fund (IMF) rose by $1.8 million to $1.499 billion. The country’s reserve position with the IMF also increased by $2.3 million to $2.029 billion, the apex bank said.
The Foreign exchange reserves of India are India’s holdings of cash, bank deposits, bonds, and other financial assets denominated in currencies other than India’s national currency, the Indian rupee. The reserves are managed by the Reserve Bank of India for the Indian government and the main component is foreign currency assets.
Foreign exchange reserves act as the first line of defense for India in case of economic slowdown, but acquisition of reserves has its own costs. Foreign exchange reserves facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
India’s total foreign exchange (Forex) reserves stand at US$426.0824 billion with foreign exchange assets (FCA) component at US$400.9782 billion, gold reserves at US$21.4842 billion, SDRs (Special Drawing Rights with the IMF) of US$1.5406 billion and US$2.0794 billion reserve position in IMF in the week to April 13, 2018, as per Reserve Bank of India’s (RBI) weekly statistical supplement published on April 20, 2018.[3] The Economic survey of India 2014-15 said India could target foreign exchange reserves of US$750 billion-US$1 trillion. – Wikipedia
