India's Foreign Exchange Reserves Crosses $600 Bn for 1st Time, Gold Reserve Decline

India's foreign exchange reserves increased by US $6.842 billion to a record high of $605.008 billion in the week ended June 4, 2021. It has crossed $600 billion for the first time. The figures released on Friday by the Reserve Bank of India i.e. RBI showed this.

Earlier, in the week ended May 28, 2021, foreign exchange reserves had increased by $5.271 billion to $598.165 billion. In the week ended May 21, it had increased by $ 2.865 billion to $592.894 billion. At the same time, in the last week ended May 14, 2021, foreign exchange reserves had increased by $563 million to $590.028 billion.

Increase in FCA due to increase

in foreign exchange reserves The increase in foreign exchange reserves in the week ended May 28 was mainly due to increase in foreign currency assets i.e. FCA, which is an important component of total currency reserves. According to the weekly data released by the Reserve Bank, foreign currency assets increased by $ 7.362 billion to $ 560.890 billion during the reporting week. FCAs are expressed in dollars. This includes assets denominated in the euro, pound and yen in addition to the dollar.

Decrease in Gold Reserves

During the reporting week, gold reserves declined by $ 502 million to $ 37604 billion. The SDR i.e. Special Drawing Rights in the International Monetary Fund (IMF) decreased by $ 1 million to $ 1.513 billion. At the same time, the country's reserves with the IMF also decreased by $ 16 million to $ 5 billion.