27. Consider the following statement about Foreign Currency Assets (FCA) of India.
1.FCA is part of India’s foreign exchange reserve.
2.It valued in terms of US dollars.
3.It includes SDR holdings of Reserve Bank.
4. It is a multi-currency portfolio.
Which of the above statement(s) is/are correct?
27. Consider the following statement about Foreign Currency Assets (FCA) of India.
1.FCA is part of India’s foreign exchange reserve.
2.It valued in terms of US dollars.
3.It includes SDR holdings of Reserve Bank.
4. It is a multi-currency portfolio.
Which of the above statement(s) is/are correct?
The correct option is C Only 1, 2 and 4
Foreign Currency Assets (FCA) are maintained as a multi-currency portfolio comprising major currencies, such as, US dollar, Euro, Pound sterling, Japanese yen, etc. as a part of India’s foreign exchange reserve and are valued in terms of US dollars. FCAs constitute the largest component of the Forex Reserves. Along with the major currencies it also comprises of investments in US Treasury bonds, bonds of other selected governments, deposits with foreign central and commercial banks. FCA excludes
1. Investment in bonds issued by IIFC (UK)
2. SDR holdings of Reserve Bank, which is included under SDR
Amount lent to Sri Lanka under SAARC Swap and Special Currency Swap Arrangement
Foreign Currency Assets (FCA) are maintained as a multi-currency portfolio comprising major currencies, such as, US dollar, Euro, Pound sterling, Japanese yen, etc. as a part of India’s foreign exchange reserve and are valued in terms of US dollars. FCAs constitute the largest component of the Forex Reserves. Along with the major currencies it also comprises of investments in US Treasury bonds, bonds of other selected governments, deposits with foreign central and commercial banks. FCA excludes
1. Investment in bonds issued by IIFC (UK)
2. SDR holdings of Reserve Bank, which is included under SDR
Amount lent to Sri Lanka under SAARC Swap and Special Currency Swap Arrangement
