Forex reserves surge to record $633.5 bn

Mumbai September 4 dmanewsdesk: The country’s foreign exchange reserves soared by USD 16.663 billion to touch a lifetime high of USD 633.558 billion in the week ended August 27, mainly due to an increase in Special Drawing Rights (SDR) holdings, RBI data showed.

On Wednesday, RBI had said the International Monetary Fund (IMF) made an allocation of SDR 12.57 billion (equivalent to around USD 17.86 billion at the latest exchange rate) to India on August 23, 2021.

SDR holdings are part of the foreign exchange reserves of a country. IMF makes the general SDR allocation to its members in proportion to their existing quotas in the Fund.

In the reporting week ended August 27, 2021, the country’s SDR holdings rose by USD 17.866 billion to USD 19.407 billion, as per weekly data released by the Reserve Bank of India (RBI) on Friday.

India’s forex kitty had declined by USD 2.47 billion to USD 616.895 billion in the previous week ended August 20, 2021.

Foreign currency assets (FCAs), a major component of the overall reserves, dipped by USD 1.409 billion to USD 571.6 billion in the reporting week, the data showed.

Expressed in dollar terms, the 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 USD 192 million to USD 37.441 billion.

The country’s reserve position with the IMF rose by USD 14 million to USD 5.11 billion in the reporting week, the data showed.

Source: The Pioneer