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Forex reserves up by $3.8 bn to $601.3 bn as Foreign Currency Assets Rise

Published on June 05, 2022
Current Context: According to RBI data The country's foreign exchange reserves increased by USD 3.854 billion to USD 601.363 billion.
Forex reserves up by $3.8 bn to $601.3 bn as Foreign Currency Assets Rise
  • The main factor behind the rise in forex reserves was due to an increase in the Foreign Currency Assets (FCA) and the gold reserves.
  • These foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.it is also expressed in dollar terms.
  • Apart from that The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by USD 132 million to USD 18.438 billion.
  • Gold reserves increased by USD 94 million to USD 40.917 billion.
  • RBI would seek to keep its stash of foreign exchange to provide an adequate cushion through the current commodities super-cycle, record inflation in the West, and the Ukraine war.
  • Foreign exchange reserves facilitate external trade and payment and promote orderly development and maintenance of the foreign exchange market in India.

Question:

Q.1 According to recent RBI data Forex reserves are up by _______ bn to reach a $601.3bn?
a. $2.8bn
b. $3.8bn
c. $4.1bn
d. $5.2bn
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