Saturday, June 29, 2019

Forex reserves hit lifetime high of $426 bn, thanks to currency swaps

India’s foreign exchange reserves have touched a record high level of $426.42 billion as on June 21, thanks to the two $5 billion each swaps initiated by the central bank in March and April.

The present level is highest since April 13, 2018, when the reserves were at $426.08 billion.

The RBI conducted the currency swaps to induce durable liquidity in the system. The swaps would be reversed in three years. 

Forex reserves hit lifetime high of $426 bn, thanks to currency swaps
Nevertheless, the weekly spike in reserves have been sharp. Reserves rose $4.2 billion in the week, despite no swaps in place. On April 26, reserves had risen $4.3 billion on account of the second currency swaps.

Gold reserves remained unchanged at $22.958 billion, according to RBI data. Special drawing rights with the International Monetary Fund (IMF) increased by $4.2 million to $1.453 billion. The country's reserve position with the fund also rose by $9.6 million to $3.354 billion.


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