Foreign exchange reserves increased by more than $2 billion. Decline in gold reserves

The country’s foreign exchange reserves have increased by $ 2.198 billion to $ 631.953 billion in the week ended February 4. In the week ended September 3, 2021, reserves had reached an all-time high of $ 642.453 billion.

increase in forex reserves

Image Credit source: PTI

There has been an increase in the foreign exchange reserves of the country. reserve Bank ,RBIAccording to the data released by the country’s foreign exchange reserves in the week ended February 4 (Forex Reserve) increased by $ 2.198 billion to $ 631.953 billion. Due to this there was a sharp fall in foreign exchange reserves last week. According to the data of the Reserve Bank, there has been a sharp increase in foreign currency assets during the week. At the same time, there has been an increase in SDR with the IMF. On the other hand gold reserves during the week (gold reserve) There has been a limited decline in Strong foreign exchange reserves are considered very important for any country. At present, the situation of economic crisis has come due to the depletion of foreign exchange reserves in India’s neighboring country Sri Lanka. At the same time, Pakistan is also surrounded in similar situations.

Where did the country’s foreign exchange reserves reach

The country’s foreign exchange reserves have increased by $ 2.198 billion to $ 631.953 billion in the week ended February 4. This information has been given in the data released by the Reserve Bank of India (RBI) on Friday. At the same time, in the last week ended January 28, the foreign exchange reserves had declined by $ 4.531 billion to $ 629.755 billion. There was a decline in the foreign exchange reserves for some time. After which the recovery has now been registered. According to the data released by the Reserve Bank, the increase in India’s foreign exchange reserves has been seen due to the rise in foreign currency assets. FCA constitutes an important part of reserves. It is expressed in dollar terms and includes fluctuations in dollar value in foreign currencies other than the dollar. According to the data, in the week ended February 4, FCA increased by $ 2.251 billion to $ 568.329 billion. On this basis, the share of FCA in foreign exchange reserves is about 90 percent. On the other hand, there has been a decline in gold reserves during the week. During the week, gold reserves declined by $ 21 million to $ 39.283 billion. Also, the Special Drawing Rights (SDR) with the International Monetary Fund (IMF) increased by $98 million to $19.108 billion.

The country’s reserve recorded a steady increase

According to the data, there has been a steady increase in the reserve of the country. In the week ended September 3, 2021, reserves had reached an all-time high of $ 642.453 billion. High level of foreign exchange reserves is a very positive sign for any economy, the situation of default of neighboring Sri Lanka was made because its foreign exchange reserves were nearing exhaustion. Same is the situation of Pakistan also. To avoid this, both the countries are also ready to take loans at high rates. At the same time, the Indian economy has got additional security due to reserves. Also, in the midst of the Corona epidemic, for this reason the country was also successful in winning the trust of the rating agencies.

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