India's foreign exchange reserves up by $1.622 mn to $481.078 bn

Mumbai, May 12: India's foreign exchange reserves has increased by 1.622 million dollars to reach 481.078 billion dollars in the week ended May 1. A RBI press release has informed that foreign currency assets, a major part of the overall reserves rose by 1.752 billion dollars to 479.455 billion dollars.

 

 

In the previous week, the reserves had declined by 113 million dollars to end at 479.455 billion dollars. Gold reserves depleted by 623 million dollars to end at 32.277 billion dollars. India's special drawing rights with the International Monetary Fund went up by 5 million dollars to 1.426 billion dollars, while the country's reserve position also increased by 489 million dollars to 4.059 billion dollars.

 

Foreign exchange reserves are cash and other reserve assets held by a central bank or other monetary authority that are primarily available to balance payments of the country, influence the foreign exchange rate of its currency, and to maintain confidence in financial markets.

 

Foreign exchange reserves can include banknotes, deposits, bonds, treasury bills and other government securities. These assets serve many purposes but are most significantly held to ensure that a central government agency has backup funds if their national currency rapidly devalues or becomes all together insolvent.