FII inflows push India’s forex reserves to a record $365.82 bn

20 Aug 2016

India's foreign exchange reserves surged by $73.2 million to touch a life-time high of $365.82 billion in the week ended 2 August 2016, boosted by a $9 billion increase in foreign currency assets, which touched $340.36 billion in the week, figures released by the Reserve Bank of India showed.

Forex reserves of the country had increased by nearly $3 billion to touch $365.75 billion last week.

The spike in forex reserves has been due mainly to an increased flow of global liquidity with foreign institutional investors pouring money into emerging markets.

In the previous week, the reserves had increased by $253.6 million to touch $365.75 billion.

Foreign currency assets (FCAs), a major component of the overall reserves, increased by $81.6 million to $340.36 billion.

FCAs, expressed in dollar terms, include the effect of appreciation/depreciation of non-US currencies such as euro, pound and yen held in the reserves.

Gold reserves remain unchanged at $21.58 billion.

The country's special drawing rights with International Monetary Fund declined by $3.2 million to $1.49 billion, while the reserve position was down by $5.2 million to $2.39 billion, RBI said.