India’s forex reserves up by $4.40 billion

Mumbai, Dec 14: India’s foreign exchange (forex) reserves jumped by $4.40 billion to $295.70 billion for the week ended Dec 6, helped by a sharp increase in foreign currency assets, Reserve Bank of India (RBI) data showed.

This is the fifth consecutive week of gain in the country’s foreign exchange reserves.

Forex reserves had soared by $5.03 billion to $291.30 billion during the week ended Nov 29, 2013.

Foreign currency assets, the biggest component of the forex reserves, soared by $5.01 billion to $268.75 billion, according to the RBI’s weekly statistical supplement. Foreign currency assets had increased by $5.07 billion to $263.73 billion in the previous week.

According to the RBI, 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.

The central bank did not give any reason for such a sharp increase in the foreign currency assets.

The value of special drawing rights (SDRs) rose by $8.9 million to $4.44 billion during the week under review.

India’s reserve position in the International Monetary Fund (IMF) rose by $3.8 million to $1.90 billion for the week ended Dec 6, 2013.

However, the value of India’s gold reserves came down by 624.2 million at $20.60 billion during the week under review.

IANS