India’s foreign exchange reserves have witnessed a substantial increase of USD 12.743 billion, reaching USD 609.022 billion in the week ending July 14, as reported by the Reserve Bank of India. This surge marks one of the strongest weekly increments in recent times.
In the previous reporting week, the overall reserves had risen by USD 1.23 billion to USD 596.28 billion.
It’s noteworthy that in October 2021, India’s forex kitty had reached a record high of USD 645 billion. However, the reserves have been gradually declining due to the central bank’s deployment of the reserves to defend the rupee amidst global pressures. For instance, in the week ending January 13 this year, the overall forex reserves had expanded by USD 10.417 billion.
In the week ending July 14, the major component of the reserves, foreign currency assets, rose by USD 11.198 billion, reaching USD 540.166 billion, as per the Weekly Statistical Supplement released by the RBI.
The foreign currency assets are expressed in dollar terms, taking into account the appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
Additionally, the gold reserves increased by USD 1.137 billion, amounting to USD 45.197 billion, according to the RBI.
The Special Drawing Rights (SDRs) also witnessed a rise of USD 250 million, reaching USD 18.484 billion.
Furthermore, the country’s reserve position with the IMF increased by USD 158 million, reaching USD 5.175 billion in the reporting week, according to the apex bank’s data.
