Forex reserves rose by $6.842 billion in the week ended June 4
The country's foreign exchange reserves increased by $1.444 billion to $589.465 billion in the week ended May 7, 2021, shows RBI data
As at end-March 2021, RBI held 695.31 tonnes of gold--403.01 tonnes overseas with the Bank of England and Bank of International Settlements, and 292.30 tonnes domestically
India is the third most indebted country among major emerging markets, behind Argentina and Brazil.
Reserves for both countries have mostly flattened out this year
The country's foreign exchange reserves declined by USD 4.255 billion to USD 580.299 billion in the week ended March 5, according to RBI data
In the previous week ended January 22, the reserves rose by $1.09 billion to $585.33 billion
Others on the list include China, Japan, Korea, Germany, Italy, Singapore and Malaysia
The country's reserve position with the IMF also increased by $40 million to $4.676 billion
Gold reserves were down by $580 million in the reporting week to $37.440 billion
Large flows pose a challenge to managing rupee appreciation
In the reporting week, the forex kitty rose mainly on the back of a jump in foreign currency assets (FCAs), a major component of the overall reserves
The central bank's core earnings or interest income from its rupee and forex assets were up just 2.3% year-on-year in FY20 despite 30% rise in its assets during the year
Central bank's balance sheet saw a larger-than-normal size due to policy actions and liquidity infusion measures adopted to mitigate shock of Covid-19 outbreak
On June 30, 2019 (FY19), the size of the bank's balance sheet was Rs 410.29 trillion
The valuation gain, reflecting increase in gold prices, amounted to $5.4 billion during 2019-20 as against a loss of $8.3 billion during 2018-19
Currency dealers say there were dollar inflows on account of Reliance Jio and Airtel deals, which the central bank absorbed
Central bank does huge OMO silently to control domestic bond yields
The gold reserve also declined by $340 million to $30.55 billion in the reporting week, the RBI data showed
Large inflows can increase policy challenges