India’s Forex Reserves at a lifetime high of $598 billion: Current Affairs Special Series

Team Adda247 and BankersAdda are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is India’s forex reserves at a lifetime high of $598 billion.

India’s forex reserves at a lifetime high of $598 billion

                India’s foreign exchange reserves surged by $5.271 billion to touch a record high of $598.165 billion in the week ended on 28^th May. RBI’s data showed that in the previous week which ended on May 21 the reserves had increased by $2.865 billion to $592.894 billion.

                The rise in the foreign exchange reserves for the week of 28^th May was due to an increase in foreign currency assets (FCAs). FCAs swelled by $5.01 billion to $553.529 billion in the reporting week, weekly data by the Reserve Bank of India showed. 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 if we expressed in dollar terms.

                RBI Governor ShaktiKanta Das said that they believed based on current expectations that forex reserves have already exceeded $600 billion that is a point that gives RBI a great amount of confidence to deal with the challenges arising out of global spillovers (in economics, spillover effects are economic events in one context which occurs because of something else in a seemingly unrelated context), should they happen at a future date. He announced this first in his second bi-monthly monetary policy review speech which was held yesterday.

                Gold reserves rose by $265 million to $38.106 billion. The Special drawing rights (SDRs) with the International Monetary Fund (IMF) were increased by $2 million to $1.515 billion. The country’s reserve position with the IMF was declined by $5 million to $5.016 billion in the reporting week, as per data.