Mumbai — India’s foreign exchange reserves rose by $10.512 billion to $692.866 billion in the week ended July 31, continuing their recent upward trend, according to Reserve Bank of India data.
The increase followed a $6.118 billion rise in reserves in the previous week.
Foreign currency assets, the largest component of the reserves, increased by $8.750 billion to $564.680 billion. Changes in foreign currency assets reflect movements in the value of non-U.S. currencies such as the euro, British pound and Japanese yen held by the RBI.
India’s gold reserves increased by $1.685 billion to $104.743 billion during the week.
Special Drawing Rights rose by $48 million to $18.666 billion, according to the central bank’s weekly statistical data.
The latest increase extends the recovery in India’s foreign exchange reserves following declines earlier in the year amid heightened uncertainty in global markets. The country’s reserves reached a record $728.494 billion in the week ended Feb. 27.
Meanwhile, RBI Governor Sanjay Malhotra said there are no plans to prematurely end the incentive scheme for Foreign Currency Non-Resident (Bank), or FCNR (B), deposits.
Indian banks had mobilized $36.7 billion through FCNR deposits as of July 31, helping attract foreign capital and support the rupee as higher global oil prices put pressure on the currency.
The RBI’s concessional zero-cost swap facility for the deposits remains in effect through its scheduled Sept. 30 deadline.
With continued FCNR inflows and the recent rise in reserves, India’s foreign exchange holdings could move back above the $700 billion mark if the current trend continues. (Source: IANS)
