foreign exchange reserves rising
When the economic strength of a country increases, it increases the confidence of the people as well as the government. It improves the purchasing power of the people. Along with this, it also strengthens the foreign exchange reserves of that country. The foreign exchange reserves of a country are used to make its trading power and trade balance effective in its favor and now India’s foreign exchange reserves are also making new records week after week and this week it has hit a ‘four’.
The Reserve Bank of India (RBI) releases a report every week on the status of the country’s foreign exchange reserves. According to this week’s report, India’s foreign exchange reserves increased by four billion dollars to $670.86 billion in the week ended July 19. This is its highest level so far. Earlier, in the week ended July 12, the country’s total foreign exchange reserves increased by $9.69 billion and reached a high of $666.85 billion. Do you know how forex reserves are calculated in India?
There was such an increase in foreign currencies
According to the data of the Reserve Bank of India, the valuation of foreign currencies, which are considered an important part of the foreign exchange reserves, increased by $2.58 billion to $588.05 billion in the week ended July 19. Foreign currencies are only calculated or valued in dollar terms. In fact, foreign currencies also include non-US currencies like Euro, Pound and Yen. The increase or decrease in their price also affects the calculation.
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This is the value of gold reserve
The Reserve Bank of India said that during the review period, the value of the country’s gold reserves increased by $1.33 billion to $59.99 billion. At the same time, the Special Withdrawal Right (SDR) that India gets from the IMF has also increased by $95 million to $18.21 billion. While the value of $4.61 billion kept as India’s reserve deposit with the International Monetary Fund (IMF) remained unchanged.
