India`s foreign exchange (forex) reserves increased by $2.198 billion to $631.953 billion for the week ended February 4 led by a sharp increase in foreign currency assets, the Reserve Bank of India (RBI) data showed.

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According to the RBI`s Weekly Statistical Supplement, foreign currency assets rose by $2.251 billion to $568.329 billion during the week under review.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK`s Pound sterling, Japanese Yen held in the foreign exchange reserves.

Foreign currency asset is the biggest component of India`s forex reserves. Other components of the forex reserves include gold, SDRs, and reserve position in the International Monetary Fund (IMF).

India`s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $98 million to $19.108 billion.

India`s reserve position with the IMF rose by $59 million to $5.233 billion during the week ended February 4, 2022.However, the value of India`s gold reserves declined by $210 million to $39.283 billion for the week under review.