Forex reserves rise by $58.38 billion in March-Sept 2021 period to $635.36 billion: RBI report

Mumbai: The country's foreign exchange reserves surged by $58.38 billion in April-September 2021 to $635.36 billion, says an RBI report released on Wednesday.

The forex reserves were at $576.98 billion at end-March 2021.

The Reserve Bank of India (RBI) publishes half-yearly reports on management of foreign exchange reserves. These reports are prepared half yearly with reference to the position as at end-March and end-September each year.

The report released on Wednesday is 37th in the series and is with reference to the foreign exchange reserve position as of end-September 2021. "During the half-year period under review, reserves increased from $576.98 billion as at end-March 2021 to $635.36 billion as at end-September 2021, the report said.

Movements in the FCA occur mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of the foreign exchange reserves, external aid receipts of the Central government and changes on account of revaluation of the assets, the report said.

As of end-September 2021, out of the total FCA of $573.60 billion, $383.74 billion was invested in securities, $147.86 billion was deposited with other central banks and the BIS and the balance $42.00 billion comprised deposits with commercial banks overseas,

it said.

At the end of June 2021, the foreign exchange reserves cover of imports decreased to 15.8 months from 17.4 months at end-March 2021.

The ratio of short-term debt (original maturity) to reserves, which was 17.5 per cent at end-March 2021, declined to 16.8 per cent at

end-June 2021.

The ratio of volatile capital flows (including cumulative foreign portfolio inflows and outstanding short-term debt) to reserves declined from 69 per cent at end-March 2021 to 65.5 per cent at end-June 2021, the report said.

As at end-September 2021, RBI held 743.84 metric tonnes of gold.

"While 451.54 metric tonnes of gold is held overseas in safe custody with the Bank of England and the Bank for International Settlements (BIS), 292.30 tonnes of gold is held domestically," the report said.