New Delhi | Jagran Business Desk: India's foreign exchange (forex) reserves rose by $2.229 billion to $634.965 billion for the week ended January 14, 2022, the Reserve Bank of India (RBI) data showed. This is after two consecutive declines that India’s forex reserve showed a remarkable rise.
The forex reserves had declined by $878 million in the previous week ending January 7, 2022. A week prior to that, the forex reserves had declined by over $1.4 billion for the week ending 31 December, 2021

According to the RBI's Weekly Statistical Supplement, all categories of the forex reserves increased during the week ended January 14, 2022.

The forex reserves consist of foreign currency assets, gold, SDRs and reserve position in the International Monetary Fund (IMF).

The foreign currency assets rose by $1.345 billion to $570.737 billion. Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK's Pound sterling, Japanese Yen held in the foreign exchange reserves.

The foreign currency assets had declined by $497 million to $569.392 billion during the week ended January 7.
Value of India's gold reserves rose by $726 million to $39.770 billion for the week under review.
India's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $123 million to $19.220 billion.

India's reserve position with the IMF rose by $36 million to $5.238 billion during week ended January 14, 2022.

According to an India Today report, about a third of India’s forex reserves are in the form of investments in US government securities. While these are a safe asset, they do not generate much of a return—less than three per cent, on average.

Experts claim that because of increased forex reserves, India, despite the COVID-19 led economic disruptions, was cushioned from global economic shocks. Much like Budget 2021, Finance Minister Nirmala Sitharaman, ahead of Budget 2022 is likely to rake up the increased forex reserves as one of the policy highlights of Modi government’s second term.

With inputs from ANI

Posted By: Mukul Sharma