Forex reserves touch all-time high of $493.48 billion

Due to an increase in the core currency assets, India’s foreign exchange or forex reserves have surged to an all-time high of $493.48 billion for the week ended May 29, the RBI said on Friday (June 5).

The reserves increased by $3.43 billion as the foreign currency assets had also risen by $3.50 billion to reach $455.21 billion during the same period. The foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Even before the country entered lockdown due to the COVID-19 pandemic, the reserves had begun hitting all-time highs. In the week to February 14, 2020, the forex reserves had reached $476.092 billion, while the reserves touched $487.23 billion after increasing by $5.69 billion in the week to March 6.

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The foreign exchange reserves had increased by around $62 billion during the financial year 2019-20. On the other hand, the total value of the gold reserves continued to decline. The reserves were at 32.68 billion, lower by $97 million compared to the previous week, said the RBI.

In the reporting week, the special drawing rights with the International Monetary Fund (IMF) were unchanged at $1.43 billion. The country’s reserve position with the International Monetary Fund rose by $31 million to $4.16 billion during the reporting week, the RBI data showed.

(With agency inputs)