India's forex reserves surge $16.663 billion to record high of $633.558 billion

The country’s foreign exchange reserves soared by $16.663 billion to touch a lifetime high of $633.558 billion in the week ended August 27, mainly due to an increase in Special Drawing Rights (SDR) holdings, RBI data showed.

On Wednesday, RBI had said the International Monetary Fund (IMF) made an allocation of SDR 12.57 billion (equivalent to around $17.86 billion at the latest exchange rate) to India on August 23, 2021.

SDR holdings are part of the foreign exchange reserves of a country.

IMF makes the general SDR allocation to its members in proportion to their existing quotas in the Fund.

In the reporting week ended August 27, 2021, the country’s SDR holdings rose by $17.866 billion to $19.407 billion, as per weekly data released by the Reserve Bank of India (RBI) on Friday.

India’s forex kitty had declined by $2.47 billion to $616.895 billion in the previous week ended August 20, 2021.

Foreign currency assets (FCAs), a major component of the overall reserves, dipped by $1.409 billion to $571.6 billion in the reporting week, the data showed.

Expressed in dollar terms, 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.

Gold reserves were up by $192 million to $37.441 billion.

The country’s reserve position with the IMF rose by $14 million to $5.11 billion in the reporting week, the data showed.