Forex Update: India’s Foreign Exchange Reserves Surge Over $7 Billion to Touch Record $681.6 Billion

India’s forex reserves surged $7.023 billion to touch a new high of $681.688 billion in the week ended August 23, according to the latest data from the Reserve Bank of India (RBI).

The overall reserves had jumped $4.546 billion to $674.664 billion in the previous reporting week.

The previous all-time high for the overall reserves was recorded at $674.919 billion as of August 2.

During the week ended August 23, gold reserves increased $893 million to $60.997 billion, according to the latest RBI data.

For the week ended August 23, foreign currency assets, a major component of the reserves, increased by $5.983 billion to $597.552 billion, the data released on Friday showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

The special drawing rights (SDRs) increased $118 million to $18.459 billion.

India’s reserve position with the IMF was up by $30 million to $4.68 billion in the reporting week, according to the latest data.

“The record all-time high level of India’s forex will create external sector resilience. With the support of strategic policy initiatives and a diligent monetary policy stance, the forex has reached a record all-time high of over $681 billion (as of August 23, 2024), amidst global economic headwinds and deepening geopolitical uncertainties,” Sanjeev Agrawal, president of the PHD Chamber of Commerce and Industry, said.

This will boost India’s economy on a faster development trajectory, strengthening its position internationally, drawing in foreign investments, and promoting domestic trade and industry, he said.

“Moving ahead, the country’s substantial foreign exchange reserves will provide the RBI greater flexibility in monetary policy and currency management,” said Agrawal.