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Updated January 5th, 2024 at 18:16 IST

India's forex reserves surge $2.75 bn to $623.2 bn

Additionally, the country's gold reserves also witnessed an uptick, rising by $853 million to $48.328 billion, as confirmed by the RBI data.

Business Desk
Forex reserves
Forex reserves | Image:Freepik
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The Reserve Bank of India (RBI) reported a notable increase in foreign exchange reserves, with a rise of $2.759 billion to reach $623.2 billion in the week concluding on December 29. This followed a previous week where the reserves surged by $4.471 billion to $620.441 billion. 

It's noteworthy that the country’s forex reserves had touched an unprecedented high of $645 billion in October 2021. However, the reserves experienced a dip as the central bank used the holdings to boost the rupee amidst significant global economic pressures that emerged since the previous year.

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Delving into the specifics, the foreign currency assets, a dominant segment of the overall reserves, grew by $1.869 billion to stand at $551.615 billion for the week concluding on December 29. These assets are denominated in various currencies like the euro, pound, and yen, and their value is influenced by fluctuations in exchange rates against the US dollar.

Additionally, the country's gold reserves also witnessed an uptick, rising by $853 million to $48.328 billion, as confirmed by the RBI data. Meanwhile, the Special Drawing Rights (SDRs), which represent a supplementary foreign exchange reserve maintained by the International Monetary Fund (IMF), increased marginally by $38 million, reaching $18.365 billion.

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Conversely, India's reserve position with the IMF saw a minor decline, decreasing by $2 million to $4.892 billion in the said week, according to the data provided by the central bank.

Overall, the increase in India's forex reserves reflects a strategic effort by the RBI to maintain stability in the currency markets and safeguard against external economic shocks, underscoring the nation's robust external financial position.

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(With PTI inputs)

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Published January 5th, 2024 at 18:16 IST

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