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Forex reserves rise to record $476 billion
Why is it in the news?
- According to RBI data, country’s foreign exchange reserves swelled by $3.091 billion to a lifetime high of $476.092 billion in the week to February 14.
- The rise is mainly due to a rise in foreign currency assets.
More in the news
- Attributers:
(1) Foreign currency assets, a major component of the overall reserves, rose by $2.763 billion to $441.949 billion in the reporting week
(2) Gold reserves rose by $344 million to $29.123 billion.
(3) The special drawing rights with the Internation al Monetary Fund (IMF) were down by $6 million to $1.430 billion.
- Forex Reserves:
(1) Foreign exchange reserves are reserve assets held by a central bank in foreign currencies.
(2) The forex reserve is also kept as a cushion against any potential balanced of payment related crisis.
(3) India’s foreign exchange reserves comprises of (i) Foreign currency assets (FCA), (ii) Gold, (iii) Special Drawing
(4) Rights (SDRs) and (iv) Reserve tranche position (RTP) in the International Monetary Fund.
Source
The Hindu.