Forex Reserves Rise To $692.6 Billion After Three Weeks Of Decline
Value of the gold reserves jumped by $5.32 billion to $106.86 billion during the week, the RBI said.
India's foreign exchange reserves jumped $5.54 billion to $692.6 billion during the week ended Nov. 14 due to a steep increase in the value of gold reserves, the Reserve Bank of India said on Friday.
Foreign currency assets, a major component of the reserves, increased by $152 million to $562.29 billion, the data showed.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Value of the gold reserves jumped by $5.327 billion to $106.857 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) grew by $56 million to $18.65 billion, the apex bank said.
India's reserve position with the IMF increased by $8 million to $4.779 billion in the reporting week, the apex bank data showed.
Reserves dropped for three consecutive weeks earlier. The forex kitty fell by $2.7 billion to $687 billion in the previous reporting week.
'Good Buffers'
Foreign portfolio investors have pulled out over $16 billion from Indian stocks so far this year.
RBI Governor Sanjay Malhotra said on Thursday the central bank has "very good" buffers of foreign exchange reserves, and there is no need for concern on the external sector.
He said the rupee depreciation is also based on fears of a widening trade deficit. India witnessed the highest-ever deficit of $41.7 billion in October, fueled by a jump in gold imports and fewer shipments to the US.
"We are confident there will be a good trade deal with the US going forward," he said during the VKRV Rao Memorial Lecture at the Delhi School of Economics.
