India’s forex reserves surged by $2.56 billion to $644.15 billion as of May 10, the latest data published by the Reserve Bank of India showed on Frida
According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by $1.49 billion to $565.65 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves were up by $1.07 billion to $55.95 billion, whereas SDRs rose by $5 million to $18.06 billion.
Reserve position in the IMF decreased by $4 million to $4.5 billion.
It can be noted that for the week ended on April 5, the country’s forex kitty reached an all-time high of $645.6 billion.
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
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