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.
