The country’s foreign exchange reserves increased by $6.55 billion to $625.63 billion in the week ending March 1. A week before this, foreign exchange reserves had increased by $2.97 billion to $ 619.07 billion.
In October 2021, the country’s foreign exchange reserves had reached an all-time high of $645 billion. The central bank used capital reserves to arrest the rupee’s fall amid pressure caused by global developments since last year, which hit currency reserves.
According to RBI data, foreign currency assets, which we considered an important part of the currency reserves, increased by $6.04 billion to $554.23 billion in the week ending March 1.
Rise In Gold Reserves
Foreign currency assets denominated in dollar terms include the impact of movements in non-US currencies such as the euro, pound and yen held in foreign exchange reserves.
During this period, while the value of gold reserves increased by $569 million to $48.42 billion, the Special Drawing Rights (SDR) decreased by $17 million to $18.18 billion.
According to RBI, India’s reserve deposits with the International Monetary Fund also decreased by $ 41 million to $ 4.79 billion in the week under review.
