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India’s Forex Reserves : Data

India’s Forex Reserves:

India’s foreign exchange (forex) reserves declined for the seventh consecutive week.

  • Forex or foreign exchange reserves are assets held by the central bank in foreign currencies as a reserve.
  • According to the latest data from the Reserve Bank of India (RBI), India’s forex reserves stood at $600.42 billion as of April 22, 2022.
  • All components in India’s forex reserves witnessed a fall in the week ending April 22, 2022.
  • The forex reserves were at an all-time high of $642.453 billion on September 3, 2021.
  • The components of forex reserves are:
    • Foreign currency assets (FCA)
    • Gold holdings
    • SDRs (special drawing rights) of the International Monetary Fund (IMF).
    • Reserve tranche position (RTP) in the International Monetary Fund (IMF).
  • Foreign currency assets (FCA) are maintained as a multi-currency portfolio comprising major currencies, such as the US dollar, Euro, Pound sterling, Japanese yen, etc.
  • Foreign currency assets (FCA) are expressed in terms US dollar.
  • Forex reserves are usually used for backing the exchange rate and influencing monetary policy.