India’s foreign exchange reserves made a quick recovery from $1.27 to $506.84 billion after the falling from the reserves in the last week. Amid the gloomy situation caused by the pandemic, India jumped by $8.2 billion in the ending of the June 5 week. Even in the lockdown, the reserve has surged by $31.8 billion.
The reserves crossed 500 billion for the first time as the week ended on June 5. By the time it had grown from $8.22 billion to whopping $501.70 billion. The June 26 week ended with an increase in foreign currency assets, considered as a major component of all the reserves.
According to the sources from Reserve Bank of India, Foreign Currency Assets (FCA) rallied from $565 million to $468 billion in the reporting week. The FCA include the effect of appreciation or depreciation of non-US unit like the other currencies like euro, pound and yen held in the foreign exchange reserves. Speaking about gold reserves, it also increased by $707 million to $33.2 billion in the reporting week.
The special drawing rights with IMF diminished by $3 million to $1.44 billion. The position with the IMF also increased by $3 million to $4.27 billion during the reporting week as per the source.