India's Forex Reserves Reach Record High Amid Economic Strategies

Record Surge in Forex Reserves

Mumbai: India's foreign exchange reserves surged by USD 11.475 billion, reaching an unprecedented total of USD 740.803 billion for the week ending August 28, as reported by the Reserve Bank of India (RBI) on Friday.

In the prior week, reserves had already risen by USD 12.422 billion, marking a record of USD 729.328 billion.

The previous peak of USD 728.494 billion was recorded during the week ending February 27, just before the escalation of conflicts in the Middle East, which caused a decline in reserves due to interventions in the forex market by the RBI.

Since the RBI introduced concessional forex swap measures in June to counteract the significant depreciation of the rupee, reserves have been on an upward trajectory, generating over USD 132 billion in new inflows.

For the week ending August 28, foreign currency assets, a key component of the reserves, rose by USD 9.337 billion, totaling USD 600.67 billion, according to the central bank's data.

These foreign currency assets reflect the fluctuations in value of non-US currencies, including the euro, pound, and yen, held within the reserves.

Additionally, the value of gold reserves increased by USD 2.191 billion, bringing the total to USD 116.409 billion during the same week, as stated by the RBI.

However, special drawing rights (SDRs) saw a decrease of USD 43 million, settling at USD 18.81 billion.

India's reserve position with the International Monetary Fund (IMF) also fell by USD 11 million, amounting to USD 4.914 billion at the end of the reporting week, according to the RBI's data.