India’s forex reserves up by $203 mn

Mumbai: India’s foreign exchange (forex) reserves increased by $203.2 million to $312.58 billion for the week ended June 6, led by a sharp rise in overseas currency assets, Reserve Bank of India (RBI) data showed.

This is the first time that the reserves have increased after two consecutive weeks of fall.

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The reserves had fallen by $273.8 million to $312.38 billion for the week ended May 30.Before that it had declined by $2.26 billion to $312.65 billion for the week ended May 23.

According to the RBI’s weekly statistical supplement, foreign currency assets, the biggest component of the forex reserves, grew by $338.9 million to $285.63 billion in the week under review.

The foreign currency assets had decreased by $269.3 million to $285.29 billion for the week ended May 30.

The RBI said the foreign currency assets, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies held in reserve such as the pound sterling, euro and yen.

India’s reserve position with the International Monetary Fund (IMF) increased by $37 million to $1.71 billion.

The value of special drawing rights (SDRs) also grew. The SDRs were up $2.7 million to $4.45 billion.

However, the value of gold reserves fell in the period under review. The reserves were stagnant at $20.96 billion since May 2. The gold reserves declined by $175.4 million at $20.79 billion.