Forex reserves surge $5.27 billion to lifetime high of $598.16 billion

Mumbai: The country’s foreign exchange reserves surged by $5.271 billion to touch a record high of $598.165 billion in the week ended May 28, RBI data showed on Friday.

In the previous week ended May 21, 2021, the reserves had increased by $2.865 billion to $592.894 billion. While announcing the second bi-monthly monetary policy review earlier on Friday, RBI Governor Shaktikanta Das said the country’s forex reserves may have crossed $600 billion currently.

“Based on our current expectations, we believe that our (forex) reserves have already exceeded $600 billion. That is something which gives us a great amount of confidence to deal with the challenges arising out of global spillovers, should they happen at a future date,” Das said.

The rise in the reserves, for the week ended May 28, was mainly on account of an increase in foreign currency assets (FCAs), a major component of the overall reserves.

FCAs swelled by $5.01 billion to $553.529 billion in the reporting week, weekly data by the Reserve Bank of India (RBI) 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 rose by $265 million to $38.106 billion. The special drawing rights (SDRs) with the International Monetary Fund (IMF) increased by $2 million to $1.515 billion. The country’s reserve position with the IMF declined by $5 million to $5.016 billion in the reporting week, as per the data.