MUMBAI: Foreign exchange reserve rose $22 million during the week ended January 1 on account of revaluation gain in the value of gold in reserves. Total foreign exchange reserves, including gold and special drawing rights (SDR — reserves currency with the International Monetary Fund) rose $22 million during the week ended January 1.
While the value of gold in reserves rose $110 million, foreign currency assets dipped $85 million. Gold in reserves is valued at prices in the London bullion market.
Not only have the prices firmed, the central bank has added close 200 metric tonnes to its existing gold holding in September at the then prevailing market prices and has also gained in value.
Source : The Economic Times