As per the weekly statistical supplement of the Reserve Bank of India, the reserves increased to $583.865 billion from $583.697 billion reported for the week ended 12 February
Bengaluru: As per the weekly statistical supplement of the Reserve Bank of India, the reserves increased to $583.865 billion from $583.697 billion reported for the week ended 12 February.
So what do the forex reserves consist of?
Well, India's forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs), and the country's reserve position with the International Monetary Fund (IMF).
A few months ago, it was reported that the RBI is studying the possibility of investing in AAA-rated corporate dollar bonds, which offer better returns than sovereign credit. Such investments have not been made in the past, so the central bank would move carefully.
Moreover, foreign investors had continued to pour money into the Indian stock market because of its stronger returns. Foreign direct investment flows, particularly towards Reliance Industries RELI.NS, have pulled in dollars into the country.
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