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. 

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.