Forex kitty swells by $3.57 billion, closes in on $400 bn-mark

Mumbai: The forex reserves surged by a massive USD 3.572 billion to touch a record high of USD 398.122 billion for the week ended September 1, on account of rise in foreign currency assets, RBI data showed on Friday.

In the previous week, the reserves had increased by USD 1.148 billion to USD 394.55 billion.

Last month, American brokerage Morgan Stanley had forecast that the reserves might touch the USD 400 billion mark in the week to September 8. And if the rise in the kitty continues with the same speed, it may cross that magic numbers next week.

The foreign currency assets (FCAs), a major component of the overall reserves, increased by USD 2.808 billion to USD 373.641 billion for the reporting week, according to the data.

Expressed in US dollar terms, FCAs include the effect of appreciation or depreciation of non-US dollar currencies, such as the euro, the pound and the yen held in the reserves.

After remaining unchanged for many weeks, gold reserves also rose by USD 748.3 million to USD 20.691 billion.

The special drawing rights with the International Monetary Fund (IMF) increased by USD 6.5 million to USD 1.506 billion, the apex bank said.

The country's reserve position with the IMF also increased by USD 9.8 million to USD 2.283 billion, it said.