India’s forex reserves rise to $582.037 billion

Indian foreign exchange reserve saw an upswing by $1.739 billion in the past week ended on March 12, 2021.

Earlier in the initial week of the month, the reserve declined by $4.255 billion to $580.299 billion.

In the beginning month of the year, the reserves set the high record of $590.185 billion in the week ended on January 29, 2021.

The reason for the number of reserves is mainly due to an increase in the foreign currency assets (FCA).

The FCA refers to the assets valued in terms of currencies excluding the currency of the home country. It uses dollars to express the currencies. The assets show the increase or decrease in the value of other currencies like the pound, yen, euro detained in the foreign exchange reserves.

According to the RBI report, the foreign currency assets increased to $541.022 billion.

Earlier in the past week, the gold reserves experienced a downfall. However, the current data of the week shows the increase of the reserves by $336 million to $34.551 billion.

Additionally, the report mentions the decline in the special drawing rights (SDR) by $4 million to $1.501 billion.

SDR was set up in 1969 created by International Monetary Fund (IMF). IMF uses SDR as an artificial currency and is re-assessed every five years.

Further, the reserve position of the country tipped over by $2 million to $4.963 billion with the International Monetary Fund.

The main component of the Indian foreign exchange reserve is the FCA. The Reserve Bank of India maintains the Indian forex for the country’s government.

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