India’s Forex Reserves Jump $4.74 Billion to $693.62 Billion

India’s foreign exchange reserves rose by $4.74 billion to $693.62 billion for the week ending August 8, according to data released by the Reserve Bank of India (RBI) on Friday.

The reserves had stood at $688.87 billion on August 1, after a sharp fall of $9.32 billion from the previous week. At the end of September 2024, India’s forex reserves had touched an all-time high of $704.88 billion.

During the latest week, foreign currency assets (FCA), the largest component of the reserves, increased by $2.37 billion to $583.98 billion. FCAs also reflect the impact of fluctuations in non-dollar currencies such as the euro, pound and yen.

Gold reserves surged by $2.16 billion to $86.16 billion, while Special Drawing Rights (SDR) with the IMF rose by $169 million to $18.74 billion. India’s reserve position with the IMF also inched up by $45 million to $4.73 billion.

The RBI intervenes in the forex market from time to time through liquidity management measures, including dollar sales, to curb excessive volatility in the rupee. The central bank maintains that its objective is only to ensure orderly market conditions, not to target a specific exchange rate.

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