India Forex Reserve: Up By $2.9 Billion To $619 Billion

The foreign reserves of India saw a decline trend in the 2nd week of Feb; according to reports, the overall reserves fell around $1.132 billion to $616.097 billion. However, for the week ending on 23 Feb, the foreign reserves were up by $2.9 billion to $619 billion. 

Foreign-exchange reserves of India comprise 4 different categories: Foreign Currency Assets, Gold Reserves, Special Drawing Rights, and Reserve Tranche Position. 

For the week ending on 23 Feb, the foreign currency assets, a major part of forex reserves, increased by $2.405 billion to $548.188. The dollar sign denotes foreign currency assets but can contain other currencies as well, like Euros, Ponds, and Yen, and the appreciation and depreciation of these currency assets are reflected in the total foreign currency assets. 

The next important thing in India’s Forex reserves is gold reserves. According to the RBI, gold reserves increased by $472 million to $47.848 billion during the week. Another part of India’s Forex reserve, SDR or Special Drawing Rights, is a set of supplementary assets of a country maintained by the International Monetary Fund or IMF.  It also saw an increase of $89 million to $18.9 billion. Meanwhile, India’s reserve Tranche Position with the IMF is also up by $9 million to $4.839 billion. 

This is not the best number of Forex reserves we’ve seen so far. In 2021, India’s Forex reserves were at an all-time high of $645 billion. 

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