India’s Forex Reserves Jump By $4.5 Billion To $702.28 Billion
India’s forex reserves increased by $4.496 billion to $702.28 billion for the week ended Oct. 17, as the value of gold reserves rose further, the RBI said on Friday.
In the previous reporting week, the overall reserves had jumped by $2.176 billion to $697.784 billion.
Foreign Currency Assets Decrease By $1.692 Billion
For the week ended Oct. 17, foreign currency assets, a major component of the reserves, decreased by $1.692 billion to $570.411 billion, the data released on Friday showed.
Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
Value Of Gold Reserves Jumps By $6.181 Billion
Value of the gold reserves jumped by $6.181 billion to $108.546 billion during the week, the RBI said.
The increase in gold reserves is a significant contributor to the overall increase in forex reserves. To know more about the importance of gold reserves and their impact on the Indian economy, read our article on Indian economy and gold reserves.
Special Drawing Rights (SDRs) Increase By $38 Million
The Special Drawing Rights (SDRs) were up by $38 million to $18.722 billion, the apex bank said.
India’s Reserve Position With The IMF Falls By $30 Million
India’s reserve position with the IMF fell by $30 million to $4.602 billion in the reporting week, according to the apex bank’s data.
Impact Of Forex Reserves On The Indian Economy
The increase in forex reserves is a positive sign for the Indian economy, as it indicates a strong external sector. A high level of forex reserves provides a cushion against external shocks and helps to maintain the stability of the currency. To know more about the impact of forex reserves on the Indian economy, read our article on the topic.
Conclusion
In conclusion, the increase in forex reserves by $4.496 billion to $702.28 billion is a significant development for the Indian economy. The rise in gold reserves and the increase in SDRs are positive contributors to the overall increase in forex reserves. However, the decrease in foreign currency assets and the fall in India’s reserve position with the IMF are factors that need to be monitored closely. To stay updated with the latest news and analysis on the Indian economy and forex reserves, visit our website and follow us on social media.
For more information on Indian stock market and forex trading, visit our website and read our articles on the topics.
