WSS - Weekly Forex Reserves - Notes on Reserve Bank of India

Main Note - [[Foreign Exchange Management]] ## Composition of Reserves 1. Foreign exchange (FX) reserves help to keep exchange rate stable in the events of international money and capital flows. In India, by statute, the RBI is the custodian of the FX reserves and the reserves are held for 2. The Board of the Reserve Bank of India keeps approving other instruments for investing the reserves. 3. RBI has framed stringent policy rules with respect to eligibility criteria for issuers, counterparties, and the investments. Safety, liquidity and returns are the key focus areas of the policy. The decision is in accordance with the Reserve Bank of India, 1934. 4. As a custodian of country’s reserves, RBI also periodically reviews in consultation with Union Government of India, its policies related to foreign exchange management. 5. ==As the custodian of reserves, the central bank focuses on how reserves are composed and aims to keep them safe, liquid, and reasonably profitable.== 6. Hence, all reserves are invested in high- grade instruments. These are also highly liquid in nature and hence can get converted into cash in a short time. As there is no prescribed formula for risk management, RBI adopts accepted best standard practices to manage risk. 7. The Reserve Bank of India releases two reports on foreign exchange reserves: 1. Weekly Statistical Supplement - It is [published](https://rbi.org.in/Scripts/BS_ViewWss.aspx) with a lag of one week (every Friday). 2. [Half yearly (May, Dec.)](https://rbi.org.in/Scripts/Publications.aspx?Publication=HalfYearly) 8. It also releases “Sale/Purchase of U.S. Dollar” monthly report (around 11th) with a lag of two months. 9. On December 16, 2022, the RBI released its weekly report called the Weekly Statistical Supplement for the week ended December 9, 2022. 10. The second table of the report shows the RBI’s foreign exchange reserves. This table has 4 items. ![[Image_Foreign Exchange Reserves_16 Dec 2022_WSS.png|600]] 11. PBoC - China’s foreign exchange reserves stand at approximately USD 3.346 trillion (end-November 2025), making it the largest holder of foreign reserves globally. 12. Bank of Russia - As of end-October 2025, Russia’s foreign exchange reserves were about USD 396.9 billion. 13. Federal Reserve / United States: As of October 2025, the U.S. official foreign currency reserves are around USD 38.3 billion. ### 1.1 Foreign Currency Assets (FCA) ^6945d9 1. Total Reserves is FCA + Gold + SDRs + RTP 2. The 1st item is FCA. It deposits some reserves with the Bank for International Settlements, some foreign central banks and foreign commercial banks, buys bonds issued by other governments or government backed debt which have not more than 10 years left for redemption. Thus, these assets are: 1. Highly rated sovereign bonds of few countries, other central banks, few entities (67.14%); 1. *Data* - The [data](https://home.treasury.gov/data/treasury-international-capital-tic-system-home-page/tic-forms-instructions/securities-b-portfolio-holdings-of-us-and-foreign-securities) from US Treasury Department tells us about RBI's holdings of US treasury securities. 2. Deposits with foreign central banks, IMF, BIS (25.99%); and rest as 3. Deposits (6.87%) with commercial banks abroad, which are banks that are headquartered abroad but located in India and headquartered in India but located overseas. 4. *Above 3 ratios are as of March-2022. 3. The RBI act specifies what kind of foreign assets RBI can buy. 4. FCA makes up > 90% of RBI’s FX reserves 5. The major currencies are USD, EUR, GBP, and JPY. But the report is prepared by converting them into USD. USDINR values are based on the reference rate issued by the FBIL. 6. The changes in value (excluding valuation effect) of FCA occur due to various activities of RBI like 1. purchase and sale of foreign exchange by the RBI in exchange for rupees (called [[Forex Market Interventions and Sterilisation|intervention]]), or selling/buying gold or selling/receiving SDRs; *Data Sources:* 1. Sale/Purchase of U.S. Dollar by the RBI (in local and offshore spot, forwards and futures) in [Monthly Bulletin](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx) 2. Maturity Breakdown (by Residual Maturity) of Outstanding Forwards of RBI (US$ Million) 2. income arising out of the deployment of the foreign exchange reserves; 3. [[Forex Market Interventions and Sterilisation#^b264c4|external aid receipts]] of the Central Government; 7. The [[Half-Yearly Report of Forex Reserves#^4c5585|valuation]] change happens due to change in market price of securities and the volatility in value of currency. 1. Example: When EURUSD falls from 1.14 to 1.08, the value of assets denominated in EUR fall in dollar terms. 2. Other factors include interest rates (bond yields) in major countries. 3. Currency and interest rates are the sources of valuation change in FCA. 8. Thus to reduce risk, FCA is held in different currencies and assets. 9. It was $564.07 billion as of December 9, 2022, up $2.908 billion from the previous week, owing primarily to a drop in US bond yields. As yields fall, the prices of bonds rise. Most of the foreign bonds held by the RBI are US Treasury bonds. 10. It fell by $43.239 billion compared to March 31, 2022, and by $71.758 billion compared to the same week last year (December 10, 2021). The RBI's recent open market dollar sales have significantly contributed to the drop in FCA. As the demand for dollars rose after interest rate hikes by the US, the RBI had to [[Measures to stabilise the exchange market#^569d8e|intervene]] and supply dollars to prevent sharp volatility in the value of the rupee against the dollar. 11. As of December 9, this item made up 88.66% of our forex reserves. 12. Conversion of FCA into US$ is done at week-end New York closing exchange rates. 13. This [article](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=20569) in October 2021 Monthly Bulletin of RBI discusses about the low returns on forex reserves during the period of low yields. ### 1.2 Gold (Monetary Gold) 1. The 2nd item in this list is [Monetary Gold](RBI_Occasional_%2020101123_Balance%20of%20Payments%20Manual%20for%20India.pdf). As this is the gold held by the central bank/monetary authority, we call it monetary gold. It comprises gold bullion and unallocated gold accounts with non-residents that give title to claim the delivery of gold. 2. It is interpreted to be at least 9995/9999 pure. 3. Gold is a reserve asset for which there is no outstanding financial liability (on anyone else’s balance sheet) 4. Central banks hold gold for various reasons. Gold is very liquid. Should a central bank face an “emergency need” for foreign currency, it can pledge or sell its gold. During the [Payments Crisis-1991](GoI_Budget%201992_The%20Payments%20Crisis-1991.pdf), India shipped 45 tonnes of gold to London to deposit it as a collateral with BoE and BoJ, to secure $400 million. Thus, gold is an “ultimate rescuer”. It is limited in supply. Gold has no default risk as it is not issued as a debt by anyone. It diversifies holdings as gold prices usually stay “safe” in terms of sell-off in other assets. It has given consistent returns over a long period. Value of gold has moved along inflation and hence acted as a hedge. 5. As of December 9, 2022, the value of monetary gold stood at $40.729 billion. It fell by $296 million from the previous week. It has decreased by $1.822 billion since March 31, 2022. It rose by $2.021 billion vs. the same week last year. 6. ==As of December 9, 2022, the RBI held 7.22% of its reserves in the form of gold.== 7. After the purchase of 200 tonnes of gold IMF in Nov. 2009 till Sept 2017, RBI held 557.79 tonne of gold. Of which 265.49 tonnes (65.49 tonnes since 1991 and 200 tonnes from IMF) are held overseas in safe custody with the BoE and BIS. 8. RBI bought 2.53 tonnes of gold in FY 17-18 (after the end of Sep-17), making it its first purchase after a gap of 8/9 years. 9. At the end of Sept-19, the RBI held 618.17 tonnes of gold, of which, 325.87 tonnes is with BoE in England and BIS. Rest of it is in India, mostly at the Nagpur vault of RBI. 10. As of September 30, 2022, it held 785.35 metric tons of gold, of which 447.30 metric tons are with the Bank of England (BoE) and the Bank of International Settlements (BIS), the rest of it (296.48 metric tons) is in India, mostly at the Nagpur vault of the RBI. So, why BoE and not other central banks? 1. Many central banks park their gold overseas with other CBs, BoE being one of them, for safety and the "role of these locations" in the gold market. 2. London is the world's trading center for gold. Whatever we buy can then be easily stored in vaults of BoE. Also, gold buyers prefer to take physical delivery in London. So, it can be shipped easily from their vaults, should we again see an "embarrassing need" to sell gold to raise foreign currency. 3. In 1991, it was BoE & BoJ who were ready to lend to India against the gold. India felt that "another" need could arise in near future. So, the pledged gold was left with BoE after re-payment. Getting it back is risky. Insurance against transit loss is not easy. 11. Other than through "regular reports", RBI doesn't disclose exact quantity of gold at various locations. 12. Gold has been valued by RBI on an end-of-month basis. So, the value of gold in forex reserves would change only for the last week of the month . It would change in the middle of the week if there is a trading by RBI. 13. In October 2019, RBI had clarified that it had started to weekly evaluate the gold in its reserves and changes in value does not reflect “trading” by RBI. 14. The morning fix by the London Bullion Market Association (LBMA) for gold/USD is used by the RBI to value gold. 15. RBI uses 90% of the average of the daily price fixed by the London Bullion Market Association (LBMA) to value gold at the end of each month. This can be seen in the WSS report for the last week. 16. ==RBI held just 6.5% of total forex reserves in the form of gold, as of December 9, 2022.== 17. Then Jalan Panel suggested RBI trades in gold and shares only the trading profit with the govt. and not the gains in revaluation account. It accepted the report in August 2019. 18. **[Data](Sansad_20210727_Gold%20Reserve%20of%20Government.pdf)** on gold reserve of the Reserve Bank of India from year 2000-2001 to 2020-21, as informed MoS, Ministry of Finance, in Rajya Sabha. 19. The [share](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=22526#C15) of foreign currency assets and gold in RBI’s balance sheet has increased from 46% in 1999-2000 to 72% in 2022-23. 20. ==Related Note - [Non-Monetary Gold and the RBI](Non-Monetary%20Gold%20and%20the%20RBI.md)== >1. [[RBI_Annual Report_2019.pdf#page=190&selection=91,0,91,49|Box X.4 Gold in Foreign Exchange Reserves (of central banks) – Recent Trends]] in RBI's Annual Report 2019 >2. [Chapter 11: The Balance of Payments Crisis of 1991](RBI_History%20of%20The%20Reserve%20Bank%20of%20India%20(1981-97)_Volume%20IV.pdf#page=453&selection=1,0,1,38) in History of The Reserve Bank of India (1981-97)-Volume IV >3. [Chapter 12: Management and Resolution of the 1991 Crisis](RBI_History%20of%20The%20Reserve%20Bank%20of%20India%20(1981-97)_Volume%20IV.pdf#page=479&selection=1,0,2,18) in History of The Reserve Bank of India (1981-97)-Volume IV ### 1.3 Special Drawing Rights (SDRs) 1. The 3rd item is SDRs. [SDR](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr) stands for special drawing rights. They are allocated (not frequently) by the IMF in proportion to the members’ quota at the IMF. SDR serves as the unit of account for the IMF and other international organizations and was created by the IMF in 1969. The SDR is neither a currency nor a claim on the IMF but just a [unit of account](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr) a can be exchanged for the currencies of IMF members using this [conversion rate](https://www.imf.org/en/data/imf-finances) 2. As they are international reserve asset, all IMF members have SDR as a part of their forex reserves. In other words, SDRs supplement the existing official reserves 3. It's value is based on basket of different amounts of these five currencies - USD, EUR, CNY, JPY, GBP and the under current IMF procedures, each U.S. dollar equivalent is calculated on the basis of the mid-market rates, as provided to the IMF by the Bank of England, based on spot exchange rates observed at around noon London time (see [Bank of England website](https://www.bankofengland.co.uk/markets/market-notices/2016/exchange-rate-information-for-calculation-of-the-sdr-november-2016) 4. 1 SDR (under the Rule O-1 (A)) is equal to [these](https://www.imf.org/external/np/fin/data/sdr_ir.aspx) currencies of different amounts. 5. As on Wednesday, December 10, 2025 , 1 SDR = US$ 1.36221 6. IMF may [allocate](https://www.imf.org/external/np/fin/tad/extsdr1.aspx) SDRs to members as per their quotas. Till date, SDR 204.2 billion has been allocated by the IMF. 7. Members can trade SDRs against currencies and avail US$ at this [conversion rate](https://www.imf.org/external/np/fin/data/rms_sdrv.aspx) (which are released daily by IMF) and [SDR interest rate](https://www.imf.org/external/np/fin/data/sdr_ir.aspx), which is released for the current weekly and is calculated as of the Friday preceding that weekly and is posted on Sunday morning, Washington D.C. time. 8. If a country is in urgent need of forex, IMF can also designate "stronger nations" to buy SDRs and provide equivalent currencies in return. All 190 IMF members have SDRs as part of their forex reserves. 9. It is a cheaper way to obtain foreign exchange. Members can buy and sell SDRs against currencies. If a country urgently needs foreign exchange, the IMF can ask “stronger nations” to buy SDRs and provide equivalent currencies in return. However, it may take a few days and make it somewhat illiquid. 10. **SDR Allocations -** As emerging economies faced forex outflows and the risk of debt defaults as a result of a virus-driven market sell-off and a drop in oil prices in 2020, it was proposed that the IMF issue new SDRs to provide liquidity support. 1. The IMF had made special [allocations](https://www.imf.org/external/np/fin/tad/exportal.aspx?memberKey1=430&date1key=2025-03-31&category=SDRNET)to help nations in the 2009 crisis. On August 2, 2022, the IMF approved a general allocation of about SDR 456 billion. 2. Similarly, allocations of SDR by the IMF in 2009 and 2021 also augmented the SDR component of reserves which valued US$ 19 billion as at end-March 2022. 3. As of March 31, 2025, India had SDRs equal to $18.169 billion. 11. For the week ended March 27, 2020, the value of SDR rose by US$ 14 million to US$ 1.423 billion due to a fall in value of US dollar against other currencies. It fell by $34 million versus the same week last year due to the valuation losses on account of fall in SDR-USD (1 SDR in terms of USD) rate. 12. India's share of the global SDR allocation can be calculated with [India's allocation](https://www.imf.org/external/np/fin/tad/exfin1.aspx) / [Total SDR allocations](https://www.imf.org/external/np/fin/tad/extsdr1.aspx) 13. Now Initially Total SDR holdings = Total SDR allocations. The interest received on SDR holdings is equal to that charges levied on SDR allocations. Hence they cancel out each other and SDRs become costless as long as the member country holds it. 1. If any SDRs are exchanged for foreign currency, the SDR holdings falls below allocation, and the borrowing member country pays [interest]([interest rate](https://www.imf.org/en/data/imf-finances) on the amount of SDRs transferred. 2. In other words, SDR allocation $-$ SDR holdings $=$ Total SDRs exchanged. 3. It goes to the country who provides foreign currency and thus their SDR holdings exceed the allocations. They receive interest and IMF (fees) from the borrowing country 14. **Balance sheet** 1. During the year 2013-14, the Reserve Bank and Government of India (GoI) entered into a MoU for transfer of SDR holdings from GoI to RBI in a phased manner 2. As on 31-March-2025, some SDR holdings still remain with GoI and is not a part of the Reserve Bank’s balance sheet. Those SDR holdings acquired from GoI form part of the Reserve Bank’s balance sheet and are included under ‘Investments-Foreign-BD’. 3. As on March 31, 2025, SDR 1.15 billion equivalent to US$ 1.52 billion were held by the Bank in its balance sheet. 15. External Debt - SDRs are long-term liability of the member because upon termination of participation in, or liquidation of, the SDR Department, the member will be required to repay these allocations and because interest accrues (if SDRs are used). Hence, SDR allocations are shown in the gross external debt position. 16. **Forex reserves** - As on March 31, 2025, the entire SDR holdings of India stood at US$ 18.17 billion, which is part of the official forex reserves of the country. >[Box 1: Special Drawing Rights – Additional Allocations](GoI_Reports_202309_India's%20External%20Debt%20-%20A%20Status%20Report_2022-23.pdf#page=37&selection=4,0,9,22) in India's External Debt - A Status Report_2022-23 >[Box X.4 Challenges to Forex Reserves Management in a Low Yield Environment](RBI_Annual%20Report_2021.pdf#page=238&selection=172,0,173,66) in RBI_Annual Report_2021 ### 1.4 Reserve Tranche Position (RTP) at IMF 1. The 4th item in the list is Reserve Position (RP) at the IMF. 2. It was [[RBI_Press Release_20040410_Forex Reserves includes India’s RTP in the IMF.pdf|included]] from the week ended April 2, 2004 in the foreign exchange reserves, published in April 10, 2004 issue of the WSS. 3. A nation’s membership fee to the IMF is called its quota. This fee helps to finance the IMF. Initially, some portion of the quota (around 25%) is paid by the member country in foreign currency (FCY) like USD, CNY, JPY, and GBP or SDRs and the rest in its own currency (like INR). 1. Rest 75 % is payable in the member’s own currency. However, no payments are actually made at the commencement of membership. Rather, the member agrees that the IMF may have access to this amount if and when it is required. The country therefore opens an account for the Fund (typically called the Number 1 Account) in its own central bank or issues to the IMF a non-negotiable security that can be cashed at any time. In economic terms, the 75 percent portion of quota represents a contingent liability of the member country to the IMF. Consequently, no transaction is recorded in the member’s balance of payments. No interest is payable on either the deposit account or the security. 4. So 25% of the quota fee/contribution of a member country is in a freely convertible foreign currency and rest is in member's own currency (or some securities). 5. The Reserve Tranche Position is equal to the foreign currency (reserve assets like foreign exchange, SDRs, gold-until 1978) portion (normally 25%) of quota payment along with increase (decrease) through the IMF’s sale (repurchase) of the member’s currency to finance the balance of payments of other members. 6. ==In other words, the Reserve Tranche Position = Quota - IMF’s holdings of INR or some securities as part of its quota== 7. RBI can borrow (or dip into) equal to the reserve tranche (RT) amount *without any interest payments or economic/policy conditions* by declaring a need to finance a balance of payments needs. Greece borrowed during the BoP crisis of 2015. 8. It is thus liquid just like a demand deposit in a commercial bank but without interest. 9. Let us consider an example of how the member countries can [dip into the reserve tranche](https://www.elibrary.imf.org/display/book/9781557755704/ch12.xml#:~:text=exchange%20reserves%20(credit).-,Other%20Transactions,-674.%20A%20member). The reserve tranche position (RTP) of the RBI (member country) in the fund falls when IMF holds more (through repurchase) of INR 1. This happens when India purchases foreign currency from IMF by selling INR to the fund. 1. The "sale of INR" occurs through an increase in the IMF’s Number 1 Account with the member country’s central bank or through the country’s issuance, to the IMF, of a security with a value equal to the amount of currency “sold” to the IMF by the member country. With this India's RTP falls as IMF's INR holdings rise above the quota. But India's total official forex reserves remains same as the reduction in RTP is *offset* by increase in India's holdings of foreign currency assets (FCA). 2. But this foreign currency comes from another (second) member country. The borrowing country's RTP is not used. As the second country gives foreign currency, there is increase in its RTP and IMF reduces its claim on (IMF reduces its holdings of) the second country's currency. The borrower country's reduction in the RTP is matched by increase in the other member country’s RTP. 2. The reserve position (RP) of the RBI (member country) in the fund rises when IMF holds less (through sale) of INR 1. This happens when India repays or buys back or repurchases INR from the IMF using convertible foreign currency when its BoP situation improves. This increase its RTP, decreases IMF's holdings of INR and India's holdings of foreign currency assets (FCA), say US dollars. 2. As the second country is repaid back, its RTP decreases, IMF's holdings of its currency increases, and second country's holdings of foreign exchange is replenished back. 3. The valuation change in RTP happens with changes in SDR exchange rates vis-à-vis the rupee and the US dollar. 10. An example-In the event of a credit crisis, RBI can seek USD from the IMF, which can then draw USD from another member say BoJ. When Japan’s quota-based foreign currency is used, it would raise Japan’s RTP with IMF and reduce IMF's holdings of JPY and BoJ's holdings of USD. At the same time, it will reduce the reserve position of RBI at IMF, increase IMF's holdings of INR, and provide RBI with ready-to-use foreign exchange reserve, that is, increase its holdings of USD. 1. Member's are also paid [interest](https://www.imf.org/external/np/fin/data/query.aspx#:~:text=Members%27%20remunerated%20reserve%20tranche%20positions%20are%20paid%20interest%20(remuneration)%20at%20the%20adjusted%20rate%20of%20remuneration.) (remuneration) at the adjusted rate of remuneration on the portion of their quota _above_ the initial, interest-free 25% which is called the the Remunerated Reserve Tranche. 2. Here a short note on [IMF's income model](https://www.imf.org/external/pubs/ft/finop/2016/pdf/chapter5.pdf) 11. The reserve tranche position is part of the member country's official forex reserves. 12. However apart from dipping into reserve tranche during times of BoP crisis, a member country can also 1. transfer or sell its [SDRs](https://www.imf.org/external/np/fin/tad/exfin2.aspx?memberkey1=430&date1key=2025-11-30) holdings to other member country by agreement in case of forex crisis. 2. avail [[Borrowing from IMF#^e937e8|loans from the IMF]] the IMF under various arrangements 13. When quotas are raised, the member pays 25% of the quota increase in foreign currency (or SDRs). A country cannot unilaterally raise its reserve position at the IMF. After this, there can be increase/decrease in RTP position depending upon IMF's holdings of member currency. 1. The [2008](https://www.imf.org/external/np/exr/ib/2008/040108.htm) Reform of Quotas and Voice, implemented in March 2011, increased India’s share from 1.91% to 2.44%. 2. In [December 2010](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr1625a), "14th General Review of Quotas" and a reform of the executive board of the IMF was approved by the Board of Governors at IMF, and India's [quota](https://www.imf.org/en/about/factsheets/sheets/2022/imf-quotas) share increase from 2.44 percent to [2.75 %](https://www.imf.org/en/about/executive-board/members-quotas) and the share increased from SDR 5,821.5 million to SDR 13,114.4 million. 3. The Union Cabinet of India [approved](https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=76827&reg=3&lang=2) this increase in October 2011. 4. But this became effective only in [February 2016](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr1625a) because US did not ratify the reforms. 5. As on Nov-2025, the quota share is 2.75% which is equal to [SDR 13,114.40 million](https://www.imf.org/external/np/fin/tad/exfin2.aspx?memberkey1=430&date1key=2025-11-30). A 25% of this value is SDR 3,512.85 million, which becomes India's current RTP position. 6. SDR is a just a [unit of account](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr) and not a currency. One can convert this reserve assets (SDRs) into USD using this [conversion rate](https://www.imf.org/en/data/imf-finances) 7. *SDR holdings and SDR as a unit of account are two different concepts* 14. ==The [Reserve position](https://www.imf.org/external/pubs/ft/bop/2018/pdf/Clarification0218.pdf) in the fund== $=$ initial foreign exchange portion of the quota subscription which is 25% $+$ any increase/decrease through the IMF’s sale/repurchase of member’s currency, which includes borrowings that dip into reserve tranche $+$ any lending to IMF under loan agreements in General Resources Account [(GRA)](https://www.elibrary.imf.org/display/book/9781557757593/ch002.xml) like GAB/NAB (short-notice repayable). 1. India was designated as a creditor by IMF for the first time under its [Financial Transaction Plan (FTP) of IMF](https://rbi.org.in/scripts/PublicationsView.aspx?id=10186#6:~:text=of%20April%202006.-,6.%20Financial%20Transaction%20Plan%20(FTP)%20of%20IMF,from%206%20countries%2C%20viz.%2C%20Turkey%2C%20Algeria%2C%20Brazil%2C%20Indonesia%2C%20Uruguay%20and%20Ukraine.,-7.%20Adequacy%20of) in February 2003 2. Investments under New Arrangements to Borrow (NAB) and Note Purchase Agreement (NPA) with IMF 3. The IMF’s corrected and expanded New Arrangements to Borrow (NAB) was effective from March 11, 2011\. India had committed to provide resources up to SDR 8,740.82 million to the IMF under this arrangement. 4. In terms of the Note Purchase Agreement (NPA) 2012 entered into between RBI and IMF, RBI had agreed to invest an amount equivalent to $10 billion in SDR denominated Notes issued by IMF. 5. Consequent to the payment of quota increase to IMF under the Fourteenth General Review of Quotas in February 2016, India’s commitment under NAB was reduced to SDR 4,440.91 million. 6. RBI had subscribed to Notes equivalent to SDR 570.51 million under NAB till the end of September, 2017, as part of Government of India’s Contribution. 15. Thus lending to IMF which are repayable at short notice goes to reserve position but long-term borrowings increases FCA but liability part get recorded in external debt. *RP does not include SDR holdings. 16. The reserve position in the fund is part of the member country's official forex reserves. But RBI uses the word RTP. In RBI's context here RTP is actually the reserve position in the fund. 17. So the official forex reserves $=$ FCA + Gold + SDR + RTP (reserve position) 18. Also RTP is not a part of the Reserve Bank’s balance sheet. 19. **How does RBI maintain reserve with IMF?** 1. SDR and RTP (and loans to IMF which are payable on short-notice) form part of international reserves. Both are maintained with IMF. > ==Box X.4 - Reserve Management in an Era of Uncertainty in RBI Annual Report 2025. [pdf](RBI_Annual%20Report_2025.pdf#page=215&selection=389,8,389,18)== > [Chapter - 5. Foreign Exchange Reserves Management](RBI_History%20of%20The%20Reserve%20Bank%20of%20India%20(1997-2008)_Volume%20V.pdf#page=179&selection=4,0,4,36) in History of The Reserve Bank of India (1997-2008)-Volume V ## Sources of variation of forex reserves 1. [[Half-Yearly Report of Forex Reserves#^f9a243|Link]] > An article on 'the Low Yield Environment and Forex Reserves Management'. [^1] published in October 2021 edition of RBI Bulletin. ## IMF - Net International Reserves 1. ==Net International Reserves (NIR) = Reserve Assets (RA) minus short-term foreign currency drains (FCD)== 2. The BPM6 does not define NIR but it does define reserve-related liabilities (RRL—see Annex I); short-term RRL could be deducted from gross assets to obtain an NIR concept 3. [Standardized Statistical Definition of Net International Reserves](https://www.imf.org/-/media/files/data/statistics/bpm6/bptt/b2-standardized-definition-of-net-international-reserves.pdf) by IMF's Committee on Balance of Payments Statistics is based on: 1. the [sixth edition of the Balance of Payments and International Investment Position Manual (BPM6)](https://www.imf.org/external/np/sta/bop/bop.htm) 2. [International Reserves and Foreign Currency Liquidity (IRFCL) Guidelines](https://www.imf.org/external/np/sta/ir/IRProcessWeb/index.aspx) 4. The [Balance of Payments Task Team (BPTT)](https://www.imf.org/en/data/statistics/bpm/bptt) is a specialized group established to advise the [IMF Committee on Balance of Payments Statistics](https://www.imf.org/external/bopage/bopindex.htm) on revising the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) and to produce BPM7. ## IMF - Reserve Management (Manuals & Guides) 1. [IMF - Manuals & Guides](Forex%20Reserves.md#IMF%20-%20Manuals%20&%20Guides) ## Trends in Reserve Management 1. It is an annual survey of reserve managers conducted by Central Banking Publications ## Data Releases 1. [Link](Foreign%20Exchange%20Management.md#Data%20Releases) ## Related Notes 1. [Half-Yearly Report of Forex Reserves](Half-Yearly%20Report%20of%20Forex%20Reserves.md) 2. [Forex Reserves](Forex%20Reserves.md) ## References 1. RBI. (March 11, 2004) - First edition of Half Yearly Report on Management of Foreign Exchange Reserves. RBI Bulletin [Link](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=5157) | [pdf](RBI_Monthly_Bulletin_Article_20040311_%20Report%20on%20Foreign%20Exchange%20Reserves.pdf) 2. RBI. (2013). [History of The Reserve Bank of India-Volume IV (1981-1997)](http://rbidocs.rbi.org.in/rdocs/content/PDFs/RBIvol404122018_PartA.pdf) Part A. Chapter 12-Management and Resolution of the 1991 Crisis. 3. Viral V. Acharya. (2017, December 14). _Global spillovers: Managing capital flows and forex reserves._ Keynote address at the NSE-NYU Conference on Indian Financial Markets, Mumbai, India. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1051) | [[RBI_Speech_20171214_Global spillovers- Managing capital flows and forex reserves.pdf|pdf]] 4. RBI. (Sept 01, 2021). *General Allocation of Special Drawing Rights by the IMF*. [Link](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52158) 5. RBI. (Oct 18, 2021). *The Low Yield Environment and Forex Reserves Management*. RBI Monthly Bulletin (October 2021). [Link](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=20569) 6. RBI. (Nov 4, 2022). *Half Yearly [Report](https://rbi.org.in/Scripts/PublicationsView.aspx?id=21355) on Management of Foreign Exchange Reserves: April - September 2022* 7. RBI.(Dec 17, 2021). Weekly Statistical Supplement. [Link](https://rbi.org.in/Scripts/WSSViewDetail.aspx?TYPE=Basic&PARAM1=12/17/2021) 8. RBI. (Dec 16, 2022). Weekly Statistical Supplement. [Link](https://rbi.org.in/Scripts/WSSViewDetail.aspx?TYPE=Basic&PARAM1=12/16/2022) 9. RBI. [[Monthly Bulletin|Comprehensive Guide for Current Statistics of the RBI Monthly Bulletin]] 10. RBI. (September 01, 2021). *General Allocation of Special Drawing Rights by the IMF*. [Link](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52158) 11. RBI. (October 18, 2021). *The Low Yield Environment and Forex Reserves Management*. RBI Monthly Bulletin (October 2021). [Link](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=20569) 12. International Monetary Fund (IMF). ( 2022, July 29). Special Drawing Rights (SDRs). [Link](https://www.imf.org/en/Topics/special-drawing-right) 13. International Monetary Fund. *SDR Valuation*. [Link](https://www.imf.org/external/np/fin/data/rms_sdrv.aspx) 14. International Monetary Fund. *Factsheets-IMF Quotas*. [Link](https://www.imf.org/en/About/Factsheets/Sheets/2022/IMF-Quotas) 15. International Monetary Fund. *Factsheets-IMF Quotas (As on Oct-2017)*. [Link](https://drive.google.com/file/d/1Jrqz4ArZjGi-Mgr9HPXvH1eQLIBY6uN2/view?usp=drive_link) 16. International Monetary Fund. *Overview of the IMF as a Financial Institution*.* [Link](https://drive.google.com/file/d/1KA7KoEgjKDbblANWSvKyJ2O3i-6u3G3N/view?usp=sharing) 17. RBI. (2022, April 18). *Foreign Exchange Reserves Buffer in Emerging Market Economies: Drivers, Motives and Implications. Monthly Bulletin* [Link](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=20941) | [pdf](RBI_Monthly_Bulletin_Article_202204_Foreign%20Exchange%20Reserves%20Buffer%20in%20Emerging%20Market%20Economies-%20Drivers,%20Motives%20and%20Implications.pdf) 18. RBI. (May 29, 2025). Annual Report 2025. [Link](RBI_Annual%20Report_2025.pdf#page=215&selection=389,8,389,18) 19. RBI. Box X.4 - Reserve Management in an Era of Uncertainty. RBI Annual Report 2025. [pdf](RBI_Annual%20Report_2025.pdf#page=215&selection=389,8,389,18) ### Others 1. Arun Jaitley (former FM of India). (2016, October 3). _Why India backs fast-tracking of the IMF’s global quota and governance reforms._ The Banker. [Link]([https://www.thebanker.com/content/d437a2fe-7308-5b24-b182-153bb190fd60](https://www.thebanker.com/content/d437)a2fe-7308-5b24-b182-153bb190fd60) [^1]: 9. RBI. (October 18, 2021). *The Low Yield Environment and Forex Reserves Management*. RBI Monthly Bulletin (October 2021). [Link](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=20569)