Blog

Despite the drop in total reserves, foreign currency assets (FCAs), which constitute the largest share of India’s forex reserves, posted a modest increase during the week. According to the central bank, FCAs rose by $846 million to $544.290 billion. These assets are influenced not only by direct holdings of foreign currencies but also by fluctuations in the value of non-US currencies such as the euro, pound sterling, and Japanese yen when expressed in US dollar terms.