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India’s Forex Reserves Surge to Record $704.88 Billion
India’s foreign exchange reserves surged by a massive $12.59 billion to hit an all-time high of $704.88 billion for the week ending September 27, according to data released by the Reserve Bank of India (RBI) on Friday. This substantial jump marks one of the highest weekly rises in the country’s reserves and is the first time the reserves have crossed the $700 billion milestone.
Strong Growth in Foreign Currency Assets
The sharp increase in forex reserves was driven primarily by a significant rise in foreign currency assets (FCA), a key component of the reserves. FCA surged by $10.47 billion to $616.15 billion during the reported week. This growth reflects the RBI’s active management of foreign exchange holdings and increased inflows from various sources.
Gold Reserves and Special Drawing Rights
The central bank’s data also showed an increase in gold reserves, which rose by $2.18 billion to reach $65.79 billion. Additionally, Special Drawing Rights (SDRs) saw a marginal increase of $8 million, bringing the total to $18.55 billion.
IMF Reserve Position
India’s reserve position with the International Monetary Fund (IMF), however, saw a slight dip of $71 million, bringing it down to $4.39 billion for the week. Despite this minor decline, the overall reserves remain robust and have shown consistent growth in recent weeks.
Record-Breaking Growth
The previous reporting week saw reserves swell by $2.84 billion, bringing the total to $692.30 billion. The current surge of $12.59 billion is one of the largest weekly jumps recorded, underscoring India’s strong economic fundamentals and favorable macroeconomic conditions.
The robust forex reserves position provides India with a significant cushion against external economic shocks and is expected to boost investor confidence in the country’s economic stability.
