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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 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.


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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