India’s Forex for the first time crosses $400-billion mark

The forex exchange reserves of India for the first time crossed $400-billion mark on September 8. It showed  $400.727 billion as per Reserve Bank of India data. It almost took a decade for the RBI to shore up by $100 billion to cross $400 billion from $300 billion.

The Foreign Currency Assets (FCAs) which mainly accounts purchase and sale of foreign exchange by the RBI, income arising out of deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets, increased by $2.568 billion to $376.209 billion.

FCAs are expressed in US dollar terms and also include the effect of appreciation or depreciation of non-US dollar currencies, such as the euro, the pound and the yen held in the reserves.

Gold reserves remained stable at $20.69 billion. Special drawing rights (SDR) from the International Monetary Fund, an international reserve asset created by the IMF and is allocated to its members in proportion of their quota at the multilateral agency, rose by $14.2 million from the previous week to $1.52 billion.

Interestingly, India has seen the third-highest reserves accretion globally after Switzerland and China so far in 2017.

 

Sources: Financial Express, NDTV

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