Forex reserves touch lifetime high in June 2017
Q. RBI forex reserves have touched a lifetime high on June 2 at ________________- Published on 12 Jun 17a. USD 381.167 billion
b. USD 391.167 billion
c. USD 401.167 billion
d. None of the above
ANSWER: USD 381.167 billion
According to RBI, India’s foreign exchange (Forex) reserves have increased by $2.404 billion to touch a lifetime high of $381.167 billion in the week that ended on June 2.
The increase was due to increase in foreign currency assets (FCAs). Components The components of India’s Foreign Exchange Reserves include: Foreign currency assets (FCAs), Gold, Special Drawing Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF).
Out of all the components, FCAs constitute the largest component of the Forex Reserves.
FCA rose by $2.748 billion to $357.290 billion in the reporting week.
FCA: Know More - FCAs consist of US dollar and other major non-US global currencies.
- It also comprises of investments in US Treasury bonds, bonds of other selected governments, deposits with foreign central and commercial banks.
- FCAs include with them the effects of appreciation or depreciation of non-US currencies like the euro, pound, and the yen and is expressed in terms of dollars.
- The gold reserves declined by $343.2 million to $20.095 billion in the reporting week.
- SDRs’ value decreased marginally by $0.2 million to $1.472 billion.
- RBI’s reserve position with the IMF declined by $0.4 million to $2.309 billion.
