Foreign exchange reserves as on January 29 rose by $1.589 billion from a week ago to $349.15 billion, according to data from the Reserve Bank of India.
Foreign currency assets (FCAs), which form a key component of reserves, rose by $1.584 billion from
the previous week to $326.63 billion.
FCAs are maintained in major currencies such as US dollar, euro, pound sterling, Japanese yen, etc. However, foreign exchange reserves are denominated and expressed in only in the US dollar.
The movements in FCAs occur mainly on account of purchase and sale of foreign exchange by the RBI in the foreign exchange market in India, income arising out of the deployment of the foreign exchange reserves, external aid receipts of the government and revaluation of assets.
Gold reserves remained stable at $17.24 billion. Special drawing rights (SDR) from the International Monetary Fund rose by $3.8 million from last week to $3.988 billion. SDR is an international reserve asset created by IMF and allocated to its members in proportion of the members’ quota at IMF.