Foreign exchange reserves jumps up by nearly 600 million dollars in a week
There was a tremendous jump in the country’s foreign exchange reserves last week. The Reserve Bank of India (RBI) said on Friday that the country’s foreign exchange reserves increased by $ 591 million to $ 616.733 billion in the week ending January 26. A week before this, the total foreign exchange reserves had fallen by a huge $2.795 billion to $616.143 billion.
Foreign exchange reserves are very important for any country. It is used to keep the currency of that country stable against other foreign currencies. Apart from this, it is also used to save the country from global crises.
Increase in gold reserves
According to Reserve Bank data, in the week ending January 26, foreign currency assets, which form an important part of the currency reserves, increased by $ 289 million to $ 546.144 billion. Foreign currency assets denominated in dollar terms include the impact of movements in non-US currencies such as the euro, pound and yen held in foreign exchange reserves.
According to the Reserve Bank, in the week under review, gold reserves increased by $ 269 million to $ 47.481 billion. During this period, Special Drawing Rights (SDR) increased by $ 27 million to $ 18.248 billion. In the week under review, India’s reserve deposits with the International Monetary Fund increased by $6 million to $4.86 billion.
Away from high level
The country’s foreign exchange reserves had reached an all-time high of $645 billion in October, 2021. But last year, the Reserve Bank had to use a part of this reserve to handle the rupee amid global developments.
