Foreign exchange reserves increased throughout April-September 2021 periodThe foreign exchange reserves increased by $58.38 billion throughout the April-September 2021 duration to $635.36 billion, against $576.98 billion during March-end period of 2021, as per a report by the Reserve Bank of India (RBI).
The reserve bank creates half-yearly reports on management of foreign exchange reserves and according to the report released on Wednesday regarding foreign exchange reserve position as on September-end 2021, they went up from $576.98 billion as on end-March 2021 to $635.36 billion as on end-September 2021, the report said.Although both US dollar and Euro are intervention currencies and the Foreign Currency Assets (FCA) are preserved in major currencies, the forex reserves are denominated in US dollar terms.Movements in the FCA take place generally due to purchase and sale of forex by the RBI, earnings occurring out of the deployment of the foreign exchange reserves, external aid receipts of the Main federal government and modifications on account of revaluation of the possessions, the report said.As of end-September 2021, out of the total FCA of $573.60 billion, $383.74 billion was bought securities, $147.86 billion was transferred with other reserve banks and the BIS and the balance $42.00 billion consisted of deposits with commercial banks overseas, it said.