Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Even as India suffered huge losses on the economic front due to the lockdown, the confidence of foreign investors remained high and India received the highest ever influx of FDI in India.
After touching a lifetime high in previous week, the country’s foreign exchange reserves declined USD 469 million to USD 574.821 billion in the week ended November 27, RBI data showed. In the previous week ended November 20, the reserves had increased by USD 2.518 billion to touch a record high of USD 575.29 billion.
In the reporting week, the reserves declined despite an increase in foreign currency assets (FCA), a major component of the overall reserves.
FCA rose by USD 352 million to USD 533.455 billion, according to the weekly data by the Reserve Bank of India (RBI). Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves declined by USD 822 million to USD 35.192 billion in the week ended November 27, the data showed. The special drawing rights (SDRs) with the International Monetary Fund (IMF) rose marginally by USD 2 million to USD 1.494 billion.
The country’s reserve position with IMF decreased by USD 1 million to USD 4.679 billion.