In the reporting week ended April 9, 2021, the increase in forex reserves was on account of a rise in foreign currency assets (FCA), a major component of the overall reserves.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like euro, pound and yen held in the forex reserves.
After declining for two consecutive quarters, the country’s foreign exchange (forex) reserves surged by USD 4.34 billion to USD 581.21 billion in the week ended April 9, according to the latest RBI data.
In the previous week ended April 2, the reserves had dipped by USD 2.42 billion to USD 576.28 billion. It had dropped by USD 2.99 billion to USD 579.28 billion in the week ended March 26, 2021.