India's Forex Reserves climb high to all time to $534.5 Billion.
                     INDIA'S FOREX RESERVES CLIMB HIGH TO 
ALL-TIME TO $534.5 BILLION
INTRODUCTION
• The country's foreign exchange reserves hit an all-time high of USD 
534.568 billion.
• This happened after surging by massive USD 11.938 billion in the week 
ended July 31, the RBI data showed.
Source: The Economic Times
WHAT IS FOREX RESERVES ?
• Foreign reserves or FX reserves are cash and other reserve assets held by 
a central bank or other monetary authority.
• They are available to balance payments of the country, influence 
the foreign exchange rate of its currency, and to maintain confidence in 
financial markets.
   
Source: SUCCESSINFUTURE
MONETARY POLICY STATUS
• Reserve Bank of India Governor Shaktikanta Das announced the monetary 
policy on Thursday.
• He said the reserves at USD 534.6 billion are equivalent to 13.4 months of 
imports.
Source: YouTube
WHAT IS MONETARY POLICY?
• Monetary policy is policy adopted by the monetary authority of a nation 
to control either the interest rate payable for very short-term borrowing or 
the money supply.
Source: YouTube
INCREASE IN RESERVES
• In FY2020-21 (up to July 31), the reserves have risen by USD 56.8 billion.
• In the week ended July 24, reserves had increased by USD 4.993 billion to 
USD 522.630 billion.
Source: Freepik
 FOREIGN CURRENCY ASSETS (FCA)
• In the week ended July 31, the reserves rose due to increase in foreign 
currency assets (FCA), a major component of the overall reserves.
• FCAs were up by USD 10.347 billion to USD 490.829 billion in the reporting 
week, the RBI data showed.
Source: The Financial Express
 FOREIGN EXCHANGE RESERVES
• Expressed in dollar terms, the foreign currency assets include the effect of 
appreciation or depreciation of non-US units like the euro, pound and yen 
held in the foreign exchange reserves.
Source: Zee Business
 GOLD RESERVES
• Gold reserves were up by USD 1.525 billion in the reporting week to USD 
37.625 billion, the RBI data showed.
Source: The Economic Times
 
WHO IS IMF?
• The International Monetary Fund (IMF) is an organization of 189 
countries, working to foster global monetary cooperation and secure 
financial stability.
• MD: Kristalina Georgieva
• Headquarter: Washington, USA
Source: The Economic Times
 
 IMF ANNOUNCEMENT
• The special drawing rights with the International Monetary Fund (IMF) 
rose by USD 12 million to USD 1.475 billion.
•  The country's reserve position with the IMF increased by USD 54 million 
to USD 4.639 billion during the reporting week.
Source: The Conversation