India’s foreign exchange reserves increased by $167.2 million to $393.28 billion as on December 21, data from the Reserve Bank of India (RBI) show. In the previous week, the reserves had declined by $613.9 million to $393.12 billion.
Foreign currency assets (FCA), which form a key component of reserves, rose by $105.2 million to $367.970 billion. FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen. Movement in the FCA occurs mainly on account of purchase or sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.
Gold reserves rose by $37.2 million to $21.224 billion. Special drawing rights (SDR) from the IMF increased by $8.9 million to $1.459 billion. SDR is an international reserve asset created by the IMF and allocated to its members in proportion of their quota. The reserve position in the IMF also surged by $15.9 million to $2.633 billion, the central bank said.