India’s foreign exchange reserves exceed $ 585 billion

New Delhi : The country’s foreign exchange reserves increased by $ 1.091 billion to $ 585.334 billion in the week ended on 22 January. This information has been given in the data released by the Reserve Bank. Earlier, in the week ended January 15, foreign exchange reserves had decreased by $ 1.839 billion to $ 584.242 billion.

Foreign exchange reserves stood at an all-time high of $ 586.082 billion for the week ended January 8. According to data released by the Reserve Bank of India, the increase in foreign exchange assets (FCA) in the reporting period led to an increase in the money reserves. Foreign currency assets constitute a significant portion of the total foreign exchange reserves. According to the Reserve Bank’s weekly data, FCA increased by $ 68.5 million to $ 542.192 billion in the reporting period.

Gold reserves value increased by $ 398 million
The FCA is denominated in dollars, but includes other foreign currency assets such as the euro, pound and yen. According to the data, the value of the country’s gold reserves rose by $ 398 million to $ 36.459 billion during the week ended January 22. The special drawing rights received by the country in the International Fund for Money (IMF) increased by $ 1 million to $ 1.513 billion, while the reserved reserves with the IMF also increased by $ 7 million to $ 5.171 billion.

What is foreign exchange reserves?
Foreign exchange reserves are funds or other assets held by the country’s central banks, which are used to repay liabilities when needed. Adequate foreign exchange reserves are very important for a healthy economy. It provides much needed help to the economy in the event of an economic crisis to support imports. This includes foreign currency assets, gold reserves and other reserves in the IMF, of which foreign currency assets hold the largest share after gold.