Mumbai–Despite a massive decline in India’s reserve position with the International Monetary Fund (IMF), the country’s foreign exchange (Forex) reserves kitty grew by $347 million during the week ended February 12, experts said on Saturday.

According to the Reserve Bank of India’s (RBI’s) weekly statistical supplement, the overall Forex reserves gained by $347.2 million to touch $351.83 billion for the week under review.

The foreign reserves had risen by $2.33 billion to $351.48 billion for the week ended February 5.

Analysts attributed the rise in Forex reserves to the currency revaluation effect and appreciation in the US dollar value.

“The country’s foreign exchange reserves rose by $347.2 million to $351.831 billion in the week to February 12, thanks to revaluation impact from the non dollar part of reserves,” Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities, told IANS.

“RBI may have been selling US dollars that week through the forward and futures market, which is not going to be counted as a part of the official reserves statistics.”

The currency revaluation strengthened the foreign currency assets (FCAs) which is the largest component of India’s Forex reserves. It grew by $1.58 billion to $330.01 billion during the week under review.

Apart from the US dollar, the FCAs consist of nearly 20-30 percent of other non-US dollar major global currencies, securities and bonds.

The individual movements of these currencies against the US dollar impacts the overall foreign reserves value.

“US dollar had rallied by around one percent against major global currencies and that may have also contributed to the increase in reserves,” a currency analyst from New Delhi told IANS.

Notwithstanding, the country’s gold reserves remained stagnant. The bullion had risen by $456.6 million to $17.69 billion for the week ended February 5.

The special drawing rights (SDRs) were higher by $21.5 million to $4.06 billion.

However, the country’s reserve position with the IMF plunged by $1.25 billion to $54.2 million.