The Reserve Bank of India (RBI) reported that India’s foreign exchange reserves climbed by $4.54 billion to $674.66 billion as of August 16. This increase comes after a $4.8 billion decline, which reduced reserves to $670.12 billion in the week ending August 9.
The RBI’s Weekly Statistical Supplement revealed that foreign currency assets (FCAs), the largest component of forex reserves, increased by $3.61 billion to $591.57 billion. These assets are priced in dollars and account for the impact of non-US currency appreciation or depreciation, such as the euro, pound, and yen.
Gold reserves increased by $865 million, reaching $60.1 billion. Special Drawing Rights (SDRs) climbed by $60 million, reaching $18.34 billion, while the International Monetary Fund (IMF) reserve position increased by $12 million, to $4.65 billion.
India’s foreign reserves reached a record high of $675 billion on August 2 before dipping on August 9. The RBI carefully regulates market liquidity, periodically selling dollars to prevent the rupee’s severe devaluation. Instead of focusing on specific exchange rates, the central bank’s operations try to maintain orderly market conditions and reduce excessive volatility.
