Foreign exchange reserves surge by USD 4.235 billion to USD 485.31 billion

The country's foreign exchange reserves surged by USD 4.235 billion to USD 485.313 billion in the week to May 8 on account of rise in the foreign currency assets, according to the Reserve Bank of India.

In the previous week, the reserves had increased by USD 1.622 billion to USD 481.078 billion. The reserves had touched a life-time high of USD 487.23 billion in the week to March 6 after rising by USD 5.69 billion. During 2019-20, the foreign exchange reserves had risen by almost USD 62 billion. In the reporting week ended May 8, 2020, the foreign currency assets (FCA), a major component of the overall reserves, increased by USD 4.233 billion to USD 447.548 billion.

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 foreign exchange reserves. The gold reserves rose by USD 13 million to USD 32.291 billion in the reporting week, the RBI data showed.

As at end-March, 2020, RBI held 653.01 tonnes of gold, with 360.71 tonnes being held overseas in safe custody with the Bank of England and the Bank for International Settlements, while the remaining gold is held domestically, according to the RBI's recent half yearly report on management of foreign exchange reserves for the period -October-March 2019-20. In value terms (USD), the share of gold in the total foreign exchange reserves increased from about 6.14 per cent as at end-September 2019 to about 6.40 per cent as at end-March 2020, the report showed.

In the reporting week, the special drawing rights with the International Monetary Fund (IMF) declined by USD 3 million to USD 1.423 billion. The country's reserve position with the IMF also dipped by USD 8 million to USD 4.051 billion during the reporting week, the data showed.