NEW DELHI— India’s foreign exchange reserves jumped by $4.69 billion to reach $702.9 billion for the week ending September 12, bringing them within striking distance of the all-time high of $704.9 billion recorded in September 2024, according to data released Friday by the Reserve Bank of India (RBI).
Foreign currency assets, the largest component of the reserves, rose by $2.5 billion to $587.04 billion. These assets include holdings in major global currencies such as the euro, pound, and yen, with their dollar valuation influenced by exchange rate movements.
Gold holdings provided a strong boost this week, climbing by $2.1 billion to $92.42 billion. Special Drawing Rights (SDRs) edged up by $32 million to $18.73 billion, while India’s reserve position with the International Monetary Fund (IMF) increased by $9 million to $4.76 billion.
Forex reserves serve as a financial safety net, allowing the RBI to intervene in currency markets when needed to reduce volatility in the rupee. The central bank maintains that such interventions are aimed at ensuring stability rather than fixing the exchange rate at a particular level.
The latest rise continues a steady upward trend. Reserves had already crossed $698 billion in the week ended September 5, after a $4.03 billion increase, which followed a $3.51 billion gain the previous week.
Analysts say the near-record buffer enhances India’s ability to withstand global shocks, defend the rupee, and instill confidence among foreign investors at a time of economic uncertainty worldwide. (Source: IANS)
