India's forex reserves soar by $ 16.663 billion due to allocation of SDR equivalent to $ 17.866 billion by IMF
Mumbai, September 3, 2021
India's foreign exchange reserves soared by a whopping $ 16.663 billion to a new high of $ 633.558 billion during the week ended August 27, 2021 due to an allocation of Special Drawing Rights equivalent to around $17.866 billion made by the International Monetary Fund.
The Reserve Bank of India (RBI) said the IMF had made the allocation to India on August 23.
"The total SDR holdings of India now stand at SDR 13.66 billion (equivalent to around USD 19.41 billion at the latest exchange rate) as on August 23, 2021. This increase in SDR holdings will be reflected in the Foreign Exchange Reserves (FER) data that shall be published for the week ended August 27, 2021," the RBI said in a press release.
SDR holdings are one of the components of the foreign exchange reserves of a country. IMF makes the general SDR allocation to its members in proportion to their existing quotas in the Fund.
The Board of Governors of the IMF had approved a general allocation of about SDR 456 billion on August 2, 2021 (effective from August 23, 2021) of which the share of India is SDR 12.57 billion, eqivalent to $ 17.866 billion.
India's forex reserves had fallen by $ 2.470 billion to $ 616.895 billion during the previous week ended August 20.
In its weekly statistical supplement, the central bank said that foreign currency assets, which constitute a major chunk of the foreign exchange reserves, had gone down by $ 1.409 billion to $ 571.600 billion during the week.
Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.
According to the bulletin, the country’s gold reserves rose by $ 192 million to $ 37.441 billion, while its special drawing rights (SDRs) surged by $ 17.866 billion to $ 19.407 billion.
The country's reserve position in the International Monetary Fund (IMF) went up by $ 14 million to $ 5.110 billion, the bulletin added.