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As per the data shown by the Reserve Bank of India (RBI), India’s foreign exchange reserves rose by $835 million to touch all-time high margins of $612.73 billion in the week ended July 16^th. In the week ended July 9^th, 2021 the forex reserves had surged to $611.895 billion from $1.883 billion.

The increase in foreign exchange reserves was due to an increase in Foreign Exchange Assets (FCA). In the week under review ended July 16^th, FCA rose from $463 million to $568.748 billion. In the case of US dollars, foreign currency assets also include the effects of appreciation or depreciation of non-US entities such as pounds, euros, and yen held in the country's foreign exchange reserves.

As per the data shown, in the reporting week, gold reserves were up by $377 million to reach $37.333 billion. The special drawing rights (SDRs) with the International Monetary Fund (IMF) were up by USD 1 million to reach USD 1.548 billion. In the reporting week country’s reserve position with the IMF declined by USD 7 million to fall to USD 5.1 billion.

What are Forex Reserves?

Foreign exchange is an asset held by the country's central bank, the RBI. These reserves are used to influence a country's monetary policy and backlog. The holding of foreign currency reserves by the country's central bank is a common practice and is mainly done so that governments have a reserve fund in case of an emergency.

Reserve Bank of India (RBI) is the central bank of India and it was established on 1^st April in the year 1935. Its headquarter is located in Mumbai and the current governor of RBI is Shaktikanta Das.

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