New Delhi — India’s foreign exchange reserves increased by $9.9 billion to $716.9 billion in the week ended Aug. 14, according to data released Friday by the Reserve Bank of India.
The latest increase followed a $14.1 billion surge in the previous week, when reserves climbed to $707 billion, their highest level of the current financial year.
The rise during the latest reporting week was supported by inflows under the RBI’s Foreign Currency Non-Resident (Bank), or FCNR(B), deposit scheme, which began to be reflected in the country’s reserves.
Foreign currency assets, the largest component of India’s forex reserves, rose by $7.2 billion to $581.85 billion, accounting for most of the overall increase.
Gold reserves also climbed sharply, increasing by $2.67 billion to $111.41 billion.
The higher reserve level strengthens India’s external financial buffer and provides additional protection against volatility in global markets and other economic uncertainties.
In the previous week ended Aug. 7, India’s forex reserves had risen by $14.14 billion, driven largely by gains in foreign currency assets and gold holdings.
Foreign currency assets increased by $9.95 billion to $574.63 billion that week, while gold reserves rose by nearly $4 billion to $108.74 billion. The country’s holdings of Special Drawing Rights with the International Monetary Fund increased by $79 million to $18.75 billion.
In rupee terms, India’s foreign exchange reserves had expanded by Rs 1.19 lakh crore in the previous week to Rs 67.32 lakh crore. (Source: IANS)
