India's foreign exchange reserves soar amid Covid-19 pandemic
Mumbai/IBNS: At a time when India is facing a fresh economic challenge triggered by coronavirus pandemic, the Reserve Bank of India said country's foreign exchange reserve has increased by USD 3.43 billion to a new all-time high of $493.48 billion for the week ended May 29 following handsome accumulation of the core currency assets.
Reserves are counted among the key indicators of a country's financial strength.
In the previous week, the reserves had surged by $3 billion to an all-time high of $490.044 billion and in the week ended May 29 foreign currency assets, a major component of the overall reserves, surged by $3.50 billion to $455.21 billion, RBI data revealed, said media reports.
The foreign currency assets reflect the appreciation or depreciation of non-US units like euro, pound and yen held in the foreign exchange reserves.
Further, the RBI data showed decline in gold reserves continued as they slipped to 32.682 billion, down by $97 million as compared with last week.
In the week ended May 29, India's drawing rights with the International Monetary Fund (IMF) remained unchanged at $1.43 billion, while India's reserve position with the IMF also rose to $31 million to $4.16 billion, RBI data showed.