India’s Forex Reserves Rise to $638.26 Billion: RBI Data
Why in the news
RBI data showed India’s foreign exchange reserves rising for the third week running to $638.26 billion, after a $1.05 billion gain the week before.
Key facts
- Foreign currency assets (FCA) increased by $6.42 billion to $544.11 billion.
- Gold reserves grew by roughly $1.3 billion.
- Valuation gains, more than direct intervention, drove the rise.
RBI market operations
- A $5 billion buy/sell swap was done on 31 January, with settlement the following week.
- Its effect was offset by net dollar sales in the spot market to limit rupee depreciation.
- The next OMO purchase was raised from ₹20,000 crore to ₹40,000 crore, a liquidity management signal; the bond market expects more auctions soon.
Exam angle
- Components: FCA, gold reserves.
- Tool: Open Market Operations (OMO) to manage liquidity.