Mumbai, August 30: India’s foreign exchange reserves have reached a new record of $729.33 billion, according to Reserve Bank of India data for the week ended August 21.
The reserves increased by approximately $12.42 billion in one week, marking the eighth consecutive week of growth. India’s forex stock has risen by around $63 billion over the past eight weeks.
Foreign currency assets increased by approximately $9.48 billion to $591.33 billion, while the value of India’s gold reserves rose by about $2.8 billion to $114.22 billion.
The sharp rise in reserves has been supported by strong foreign-currency inflows and measures introduced by Indian authorities to attract overseas funds.
Reuters reported that the RBI received nearly $73 billion through measures introduced to boost dollar inflows, including around $65 billion from non-resident Indian deposits.
The record reserve level provides India with a stronger external financial cushion amid continuing global economic and geopolitical uncertainty.
Why it matters:
A larger forex reserve provides greater protection against external shocks, supports confidence in India’s balance of payments and gives the RBI greater room to manage volatility in the currency market.