India’s forex reserves jumped by $4.546 billion to $674.664 billion during the week ended August 16, according to the latest RBI data. In the previous week, the forex kitty had dropped by $4.8 billion to $670.119 billion. On August 2, the overall reserves hit an all-time high of $674.919 billion.
In the week ended August 16, foreign currency assets, a major component of the reserves, increased by $3.609 billion to $591.569 billion, the RBI data 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.
Gold reserves increased by $865 million to $60.104 billion during the week ended August 16. The special drawing rights (SDRs) were up by $60 million to $18.341 billion. India’s reserve position with the IMF was up by $12 million to $4.65 billion during the week, said the RBI.
Sanjeev Agrawal, president of PHDCCI, said, “India’s FOREX hovering around all-time record-breaking position is highly appreciable. With prudent policy initiatives and a diligent monetary policy stance, supporting India’s strong position against global economic headwinds and a volatile geopolitical landscape, the FOREX is hovering around record high at over $674 billion (as of August 16, 2024).”
This will propel India’s economy on a faster development trajectory, raising its international standing, drawing in foreign investments, and promoting domestic trade and industry, said Agrawal.
“The country’s substantial foreign exchange reserves will provide the RBI with greater flexibility in monetary policy and currency management,” he added.
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