New Delhi: India’s foreign exchange reserves have once again reached a new record high. According to the latest RBI data, reserves surged by $11.475 billion in the week ended August 28. This brought the country’s total foreign exchange reserves to a new all-time high of $740.803 billion. The previous week also saw a sharp increase of $12.422 billion. This continued strengthening of foreign exchange reserves is being considered a positive sign for the Indian economy.
$11.47 billion jump
According to data from RBI, the country’s foreign exchange reserves increased by $11.475 billion in the week ended August 28, bringing the total to $740.803 billion. In the previous reporting week, reserves had increased by $12.422 billion to reach $729.328 billion. Previously, reserves had reached a record high of $728.494 billion in the week ended February 27. Now, the new figure has surpassed that previous record.
Highest increase in foreign currency assets
Foreign currency assets constitute the largest portion of the country’s foreign exchange reserves. They increased by $9.337 billion in the week ended August 28, bringing the total value of foreign currency assets to $600.67 billion. Changes in the value of other currencies, such as the euro, pound, and yen, against the dollar also impact this figure.
Foreign exchange reserves increased since June
The growth in foreign exchange reserves has accelerated since June. The RBI announced a concessional foreign currency swap initiative in June amid sharp rupee weakness. This initiative has led to an increase in new capital flows into the foreign exchange reserves. According to available data, this initiative has resulted in a new inflow of over $132 billion.
Decline in SDR and IMF
However, other components of foreign exchange reserves saw a slight decline. Special Drawing Rights (SDRs) declined by $43 million to $18.81 billion. India’s reserve position with the International Monetary Fund (IMF) declined by $11 million to $4.914 billion.
However, gold reserves jumped by $2.19 billion.
