RBI forex reserves grow by $4.3 bn to $581.2 bn

Mumbai: India’s foreign exchange reserves rose by $4.344 billion to $581.283 billion in the week of April 9, Reserve Bank of India’s data showed on Friday. The increase in foreign kitty in the reporting week was mainly on the back of a rise in the value of foreign currency assets (FCA) held by the central bank, which constitutes a major component of the overall reserves. FCA rose by $3.017 billion to $539.455 billion, data showed.

The FCA reflects appreciation or depreciation of currencies like the euro, pound and yen held in the foreign exchange reserves, expressed in dollars. Typically, the value of FCA for a said week is a function of currency depreciation and also the intervention in the currency market by RBI.

Meanwhile, in the week gold reserves rose by $1.297 billion to $35.320 billion, as per the central bank data.


The special drawing rights (SDR) with the International Monetary Fund (IMF) – another component of the forex kitty –rose by $6 million to $1.492 billion. The reserve position with the IMF too reported an increase of $24 million to $4.946 billion during the reporting week.

The rise in forex reserves is typically a factor of an increase in portfolio investments from offshore investors and also a growth in foreign direct investments (FDIs) during the period.