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Thursday, October 22, 2020

Forex reserves continue surge; gain $3.6 bn to hit all-time high again

In the previous week ended July 31, the reserves had increased by $11.938 billion to reach $534.568 billion.

By: ENS Economic Bureau | New Delhi | August 16, 2020 12:40:10 am
Forex reserves, foreign exchange reserves, currency assets, Indian economy, Indian express newsDuring the reporting week, the forex kitty rose mainly due to an increase in foreign currency assets (FCA), a major component of the overall reserves.

The country’s foreign exchange reserves swelled by $3.623 billion to a record high of $538.191 billion in the week ended August 7, RBI data showed on Friday.

In the previous week ended July 31, the reserves had increased by $11.938 billion to reach $534.568 billion.

The reserves had crossed the half-a-trillion mark for the first time in the week ended June 5, 2020, after it had jumped by $8.223 billion to $501.703 billion.

In the week ended August 7, the forex kitty rose on the back of gains in foreign currency assets (FCAs), a major component of the overall reserves.

FCAs rose by $1.464 billion to $492.293 billion in the reporting week, the RBI data showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves were up by $2.160 billion to $39.785 billion.

The trend of rising foreign exchange reserves started after Finance Minister Nirmala Sitharaman announced a sharp cut in corporate tax rates on September 20, 2019.

With PTI inputs

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