What are the components of RBI's forex reserves?
The Reserve Bank of India's (RBI) foreign exchange reserves, also called forex reserves, refers to the assets the central bank holds to provide import cover and protect against external shocks. The reserves are accumulated on an ongoing basis and variations occur as a result of the RBI's market operations. The four components of forex reserves are foreign currency assets, gold, special drawing rights and the reserve position in the International Monetary Fund. As on July 2, India's forex reserves stood at a record high of $610 billion, of which $566.99 billion was in the form of foreign currency assets and $36.37 billion was in the form of gold.