India Foreign Exchange Reserve Increases By $2.5 Billion Thanks To SDR's

EDITOR NOTE: Looking at the $2.5 billion increase in India’s foreign exchange reserves, we may be witnessing the beginning of the International Monetary Fund’s inconspicuous moves toward global SDR adoption. As part of its reserve increase, India’s gold reserves dropped, while its SDR reserves increased significantly. This marks one of the IMF’s several opening volleys toward advancing the SDR as a global reserve currency in place of the US dollar.

Mumbai, Nov 27 : India’s foreign exchange reserves rose $2.51 billion during the week ended November 20.

According to the Reserve Bank of India’s weekly statistical supplement, the reserves increased to $575.290 billion from $572.771 billion reported for the week ended November 13.

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).

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by $2.83 billion to $533.10 billion.

However, the value of the country’s gold reserves decreased by $339 million to $36.015 billion.

Nevertheless, the SDR value gained $4 million at $1.492 billion, while the country’s reserve position with the IMF rose by $19 million to $4.68 billion.

Originally posted on Siasat Daily