India’s Foreign Exchange Reserves Accelerate to $316.39 Billion

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India’s Foreign Exchange Reserves Accelerate to $316.39 BillionIndia’s foreign exchange reserves surged by $614.6 million to$316.39 billion in the week through July 4, according to figures released by the Reserve Bank of India.

The forex reserves had earlier grown by $856.6 million to close at $315.77 billion in the week through June 27, boosted by a huge increase in overseas currency assets.

The RBI reported that foreign currency assets, which constitute the biggest segment of forex reserves, rose by $760.6 million to $286.57 billion. The foreign currency assets had increased by $850.9 million to stand at $288.82 billion in the week through June 27, reported the Times of India.

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The foreign currency assets, which are normally denominated in US dollars, incorporate the effect of appreciation or depreciation of the non-US currencies that are held in reserve like the pound, sterling, the yen or the euro.

The country’s reserve position at the International Monetary Fund (IMF) rose by $2.6 million to end the week at $1.71 billion. The value of special drawing rights (SDRs) increased by $4.46 million to close the week at $6.9 billion. Nonetheless, gold reserves saw their value plunge by $155.5 million to $20.63 billion.

Erstwhile, in Bangladesh, the foreign exchange reserves were $21.12 billion, according to the central bank. The reserves had earlier surpassed the $21 billion mark on June 16 before reducing on payment of import bills worth $970 to the Asian Clearing Union on July 6.

The increase in forex reserves was attributed to the increasing remittances and exports as well as foreign loans sent to local firms. The central bank estimates that the current forex reserves can cover six months of import bills. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com