India’s Forex reserves rise by over $4 bn

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India's Forex reserves rise by over $4 bn
An activist of Congress party holds banned 500 and 1000 rupee notes during a protest against the government's decision to withdraw high denomination notes from circulation, in front of Reserve Bank of India. in Hyderabad India, Monday, Nov. 28, 2016. Indian Prime Minister Narendra Modi, in his Nov. 8 televised address, announced the demonetization of India's 500 and 1,000-rupee notes, which made up 86 percent of the country's currency. He said it would wipe out rampant corruption, though in a country of 1.3 billion where most people don't have bank accounts, it also wiped out legally collected savings. (AP Photo/Mahesh Kumar A. )

Mumbai: India’s foreign exchange (Forex) reserves rose by $4.12 billion as on February 2, official data showed on Friday.

The Reserve Bank of India’s (RBI) weekly statistical supplement showed that the overall Forex reserves rose to $421.91 billion from $417.78 billion reported for the week ended January 26.

India’s Forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the RBI’s position with the International Monetary Fund (IMF).

Segment-wise, FCAs — the largest component of the Forex reserves — increased by $3.02 billion to $396.76 billion during the week under review.

Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global currencies. It also includes investments in US Treasury bonds, bonds of other selected governments and deposits with foreign central and commercial banks.

Similarly, the country’s gold reserves value rose by $1.09 billion to $21.51 billion.

The SDRs value inched up by $3.2 million to $1.54 billion, while the country’s reserve position with the IMF rose by $4.3 million to $2.08 billion.