On higher Foreign Currency Assets, reserves rises to over USD 420 billion

According to the Foreign Currency Assetsweekly statistical supplement, the overall forex reserves rose to USD 420.055 billion from USD 418.687 billion reported for the week ended May 3.

Mumbai: India's foreign exchange reserves increased by USD 1.368 billion during the week ended May 10, official data showed on Friday.

According to the Reserve Bank of India's weekly statistical supplement, the overall forex reserves rose to USD 420.055 billion from USD 418.687 billion reported for the week ended May 3.

India's forex reserves are expressed in terms of US dollars and comprise of Foreign Currency Assets (FCAs), gold reserves, Special Drawing Rights (SDRs) and India's reserve position with the International Monetary Fund (IMF). FCAs constitute the largest component of Indian Forex.

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by USD 1.358 billion to USD 392.227 billion.

Besides the US dollar, FCAs consist of 20-30 per cent of the other major global currencies.

The RBI's weekly data showed that the value of the country's gold reserves was stagnant at USD 23.021 billion.

However, the SDR value inched higher by USD 3 million to USD 1.454 billion, while the country's reserve position with the IMF inched up by USD 7 million to USD 3.351 billion.

Foreign Exchange Reserves are the reserve assets held by the central bank in foreign currencies. These reserves are used to back liabilities and influence monetary policy. It includes any foreign money held by a central bank, such as the U.S. Federal Reserve Bank.